VAT with a tax of 24%, 13% or 6% depending on the type of product will have the small packages worth up to 22 euros imported from third countries, such as Great Britain and China. 

The electronic purchases of products from abroad become more expensive from the 1st of July. This will happen as, according to an EU directive, the VAT of the country of destination will be imposed and not that of the country of origin, which translates into increases, as VAT rates in Greece are among the highest. On the contrary, markets from countries such as Denmark, Finland, Croatia,

Hungary and Sweden, which have higher VAT than the Greek one. 

VAT with a tax of 24%, 13% or 6% depending on the type of product will have the small packages worth up to 22 euros imported from third countries, such as Great Britain and China. 

According to EU figures, around 150 million small packages are imported each year to EU countries.

All parcel imports will be subject to VAT valid in the country of destination from 1 July, according to an EU decision. which also applies in our country. Also, the small packages worth up to 22 euros coming from third countries, and until now were exempt from VAT, are part of the new framework, as studies by the Commission found that they create conditions of unfair competition, while tax evasion is estimated at 5 billion euros per year.

In view of the entry into force of the new EU framework in the field of VAT, in relation to electronic transactions (e-commerce), and in particular the tax burden of small parcels imported from third countries, from 1 July 2021 all parcel imports up to 22 euros, ordered electronically and currently exempt from VAT, subject to tax. This means that consumers will be charged with the VAT rate applicable in our country (24% or 13% or 6%), depending on the type of goods.

It is noted that the imposition of VAT on small packages is related to the time of their entry into the European Union and is independent of the time of the online order or the start of shipping by the seller. Therefore, individual importers or postal companies, which import from 1.7.2021 small packages in our country, regardless of the amount, must comply with the prescribed customs procedure and pay – as the case may be, depending on the type of goods – the applicable VAT. According to EU figures, around 150 million small packages are imported each year to EU countries.

This practically means that if someone living in Greece orders a product worth 20 euros through a platform, e.g. from China, the product will be charged with VAT and specifically at rates of 24%, 13% and 6%. Today for the above product and until the end of the month no VAT is paid.

Also, in case a resident of Greece orders through a platform a product regardless of value, e.g. from France, where rates of 20%, 10% and 5.5% apply, the product will not be charged with VAT applicable in the country of dispatch, but with VAT applicable in Greece and specifically with rates of 24%, 13% and 6%.

Today, small packages worth up to 22 euros imported from third countries are not subject to tax.

Source – aftodioikisi.gr

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