If you’re a fan of ordering online through sites like Amazon, Wish, or AliExpress, expect it to cost you more! In fact, from July 1, 2021, a new tax will apply to parcels from countries outside the European Union.
A new tax? Not really, but until July 1st, parcels from the Far East in particular did not pay 20% VAT. In order to try to balance the balance between sellers shipping from France and other countries, this law now requires all packages to collect VAT! And for consumers, this should inevitably lead to an increase in the price of the articles. Explanations.
In an article, Les Echos recalled that in 2019 Amazon had 100 million Prime subscribers, 5 billion shipments, 177.9 billion in sales, 755 billion market cap and 130,000 new hires.
The health crisis responsible for this change?
The health crisis we’ve been experiencing for over a year is disrupting our buying habits … and many of us turned to online sites when physical stores were closing. It was necessary to keep getting dressed, doing handicrafts, etc. And we also have to admit that online shopping is sometimes cheaper than in the sales area. They also offer a more extensive selection, as explained Monday night on BFMTv, a fan of shopping on Amazon.
And what will change for us consumers? Image Credit: Shutterstock / Fizkes
Orders placed on or after July 1st could see prices rise by 30%, as Capital explains in a recent article. And this applies to all websites that use the “marketplace” to sell products … Third-party providers who, for example, broadcast from China via the platforms of French websites, now pay this VAT! Capital also explains that this equates to around 58% of the products ordered for Amazon and around 33% for Cdiscount.
And what will change for us consumers?
Amazon and AliExpress have already committed to complying with this new European regulation. Before this law, parcels with a market value of less than € 22 were exempt from VAT … From July 1st, all parcels, regardless of market value, must do this!
Specifically, the tax for a package of € 20 is € 4, while it did not exist before! We understand that as a result, prices will skyrocket! It remains to be seen how the websites will react. By passing this on to the price of an Amazon Prime? By increasing the shipping costs? Or just by increasing the price of each product? Even so, it won’t be good for our wallets, but certainly a good omen for the treasury!