From 1 July 2021, AliExpress generally will need to collect VAT on sales of goods delivered to EU consumers, including circumstances where goods are delivered from outside of the EU with order value of up to 150 EUR, or where goods are shipped from within EU where the seller is established outside the EU.
For all goods shipped from outside of EU and VAT-collected by AliExpress, our sellers and their logistics operators will need to include the Import One Stop Shop (IOSS) number of AliExpress in their import declaration into EU, this is to ensure that the goods can then be released for free circulation and delivered to you without being charged with VAT or any additional handling fees at the customs.
FAQ
Q: What is the official reference regarding VAT, taxes and customs from the European Union?
A: You can find more details about VAT, taxation and customs in the official European Union website, please follow the link: https://ec.europa.eu/taxation_customs/business/vat/eu-consumers_en
Q: What is VAT? Why do I have to pay VAT?
A: Value-Added Tax, or VAT is in general a broadly based consumption tax assessed on the value added to goods and services. It is ultimately borne by the final consumer and is charged as a percentage of selling price, including transportation fees and any other services included in the sale. To learn more on VAT in EU, please follow the link: https://ec.europa.eu/taxation_customs/business/vat/what-is-vat_en
Q: How is VAT calculated? What is the VAT rate applicable in my country? Why some products are sold at a different VAT rate?
A: VAT is generally charged based on the price (considering both goods and shipping fees) at the applicable VAT rate. The VAT rate differs depending on the type of goods purchased in the country of final destination. The standard VAT rate in the EU is in the range of 17 – 27%, and some countries offer reduced rate for certain types of goods.
You may look up the applicable VAT rate here:
Q: How much VAT I need to pay for ordering on AliExpress?
A: You can find VAT value on ordering summary page as below.
Q: Where can I get invoice for my order with VAT?
A: Invoices are available for all orders on which AliExpress has collected VAT at check-out. You can find your invoice on following path: My Orders / All Orders/ Download Invoice
Q: Why the price at check-out is different from the price on products details pages?
A: Prices may be updated at check-out due several factors, including seller’s changes of product price, change of currency, exchange rate, the ship-from location, the actual delivery address (country), the delivery model selected, promotion, discounts or coupons applicable. VAT calculation will be updated accordingly upon check-out.
Q: I ordered before 1 July, do I need to pay for VAT for goods receiving?
A: For Transitional Period goods, since they are ordered before 1 July, our IOSS number cannot be used to simplify the importation process. You may be contacted by the logistics partners for the relevant import VAT and charges, subject to the implementation practice of the respective EU customs authority and the logistics partners.
If you purchased from a shipping location based in the EU, since the goods are already in the EU and any taxes should have been reflected in the price offered by the seller, you shall not be charged of any additional taxes after purchase.
Q: Will I be charged again when goods deliver to my country?
A: If you have paid for order with VAT in AliExpress, VAT should not be charged again by customs/logistics provider. In case you were charged again, please keep the invoice and submit it to customer service team to get refund of it. Please note administration fee pay to logistics provider cannot be refunded in this case.
Q: Will VAT be returned back to me when the order was refunded?
A: For orders where AliExpress wasn’t collecting VAT, it is usually for the buyers and sellers to discuss on how to handle the relevant tax matters. You may further check with the sellers and relevant tax / customs authorities to understand more about this.
For orders where AliExpress collected VAT, we will refund the VAT as appropriate to you.AliExpress will calculate and refund the VAT as appropriate for your refunded or partially refunded orders. A credit note will also be issued accordingly.
Q: Should I pay the custom duties if I already paid VAT?
A: VAT and customs duties are different types of taxes.
From 1 July 2021, AliExpress is required under the new EU e-Commerce VAT rules to collect VAT for orders at EUR 150 or less that are shipping from outside of EU to buyers located in EU at check-out. Such VAT collected orders shall be declared for customs with AliExpress IOSS number, and you will not be charged with VAT again.
Parcels with goods valued no more than EUR 150 can also enjoy customs duty exemption. Parcels with goods valued more than EUR 150 will be subject to VAT and customs duties as appropriate upon importation.