VAT on products imported from China: what you need to know

Introduction

Since July 1, 2021, VAT applies to all imported orders, even the smallest ones. If you buy cycling equipment or other products in China.

This article clarifies the rules in force and explains why it is essential to get information from reliable sources like VeloExotique.fr.

There is also the Customs website for information retrieval 🙂 

To whom does import VAT apply?

All imports from a territory outside the European Union are now subject to VAT starting from €1.

Since the exemption up to €22 has been eliminated on July 1, 2021

What is the applicable VAT rate?

The standard rate of 20 % This generally applies, but reduced rates (10 %, 5.5 %, 2.1 %) may apply depending on the nature of the products 

For cycling-related products, it's 20%.

How is VAT collected?

VAT is prepaid upon purchase on AliExpress via the scheme IOSS (Import One Stop Shop)

What is the tax base?

VAT is calculated on the customs value, including the purchase price, transport, and any costs (packaging, insurance), but excluding the VAT itself

Should I expect additional fees?

Yes, beyond VAT you may find customs duties for orders over €150.

Carrier handling fees may also apply upon delivery.

Conclusion

Import VAT on products from China is now inevitable, even for small purchases. 

When purchasing on an AliExpress-type platform, the site will collect the VAT at the time of purchase, which will be remitted to France.

Your account has been created, but a few settings are required before you can place an order:

• Add a delivery address : specify your street, postal code, city, and country.

• Add a payment method : credit card, PayPal, or other available options.

• Set language and currency choose French and EUR (€) to make your purchases from France easier.

Tip: you can save multiple addresses (home, work, pickup point) for greater flexibility when placing your orders.