From 1 July, 2021, the EU is to abolish the current VAT exemption on all low-value goods imported into the EU, which the claimed cost is no more than €22. The details of VAT change is as below:

Parcel ValueBefore 1. July. 2021After 1. July. 2021Changes
≤€22NO Duty, NO VATNO Duty, VATAdd VAT cost, add IOSS channel for VAT declaration
€22 – €150NO Duty, VATNO Duty, VATAdd IOSS channel for VAT declaration
> €150Duty & VATDuty & VATNo change

This VAT change policy has a big effect to B2C ecommerce, how it will affect Europe buyer source molds from China mold?

According to the full knowledge of this policy, and the consult from Express Forwarder. We could conclude that.

No big effect on mold price.

There’s three parts on importing and exporting operation will affect mold price

a. Molding material exporting to China.

—-The VAT cost arise in China custom clearance, there’s no relationship with EU VAT change.

b. Sample delivery cost after each molding tryout.

—EU VAT change will contribute to slight delivery cost increase. From above graph, we could know that parcel less than €22 have no VAT before, now no matter how much the parcel value is, VAT cost is necessary. As a result, the delivery cost for small parts will increase slightly, but the percentage accounts for the whole mold price is very tiny, less than 5%.

c. Mold shipping cost

—Mold valve is a big amount of money, before and after the VAT new policy, importers have to fully pay the VAT and Duty cost.

Mold project operation and project management

After mold tryouts, mold suppliers will submit the molded samples via Express companies, such as DHL, FedEx, TNT, UPS etc., as a proof to check the mold work. As the new VAT policy, cancelled the VAT for parcel value less than €22(while for most small and middle size parts, the parcel value is in this case), which means before parcel delivery, VAT have to be paid. So, logistic clerk have to be careful on parcel delivery situation, and pay the VAT as soon as possible, in case it will affect sample delivery.

Also, we get notice from forwarder that, different countries may have different policy on how to charge the fee, some countries only accept online, some may accept charge when delivery on site, details please check with your local custom dept..

Hopeful this article do help you on mold import & export business!

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