EU countries perspective of the removal of the de minimis 2021, Sweden was the first country to implement 2018 1st of march.
Collection of Duty & Tax from 3rd country
E-Commerce shipments are increasing dramatically, and all international delivery companies have difficulties with customs clearance, communication, collections and delivery.
Especially from 3rd country outside EU ex. “The China packages” is a burden for all countries in the EU and their local Postal Services, due to the low shipping rates from especially China. As China is taking advantage of an old UN agreement, the China Postal Service can send packages at almost “no cost”.
In Sweden, at most, up to 160 000 packages per day, with a consequence of very high costs to handle and deliver the shipments. But, from March 1st of 2018, Sweden began to collect VAT from the first Eurocent of value. This has had a tremendous impact.
Negative effects of the so-called China packages for EU countries are e.g. unfair competition for the national retail sector, missed VAT-collection, dangerous goods (not CE-marked) coming in to the market, environmental impact by sending one package at a time and unsustainable work conditions for workers at customs and postal services
From Jan 2021 all EU countries must collect d/t from the first Eurocent. http://europa.eu/rapid/press-release_MEMO-16-3746_en.htm
PayGround platform
PayGrounds platform for communication and collection manages everything from notifications via SMS, Email or Postal Mail, payments (invoice, mobile payments, direct banking, card, etc), reminders, returns, financial reports, status reports, out payments and deviations and more.
Many reasons to take action to collect VAT on values below 22 euro:
- Environment – that ”one package at the time” shipments from non-EU countries have a tremendous impact on the environment. By reducing the number of packages this would have a positive impact. Consequently, the daily packages can bee reduced from approximately +100.000 to 20.000 per day.
- Unfair trading conditions – Retail business have no chance in the competition versus websites such as Wish, Alibaba and others from China due to the cheap transportation costs. Retailers have paid duties & taxes on all imported goods, and since ecommerce websites ships individual goods below the threshold of 22eur the shipments fall under the exemption value of 22eur and can therefore offer much lower pricing. By charging an administration fee as well as import VAT from the first euro cent the trading conditions are now fairer, the user is obliged to pay import VAT and administration fee’s regardless of the purchasing channels(omnichannel)
- Increased tax revenues – Millions of low value packages per day means a lot of tax revenues getting lost. And we can demonstrate that the cost of collection of small VAT values is worth considering.
- Undeclared CE-goods – undeclared CE-goods were flooding into EU and had to be reduced to reasonable volumes.
- The cost for deliver the “China Packages” and other packages reduces as the volumes decline, even if there is a revenue in this, it can be costly to handle in the total chain.
OUR SERVICES
Modernize the duties and taxes payment and collections
Manage all known payment methods
Release packages directly – less stock volume
Instant collection before delivery
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