
Two more articles:
https://taxation-customs.ec.europa.eu/buying-goods-online-coming-non-european-union-country_en
https://www.vatcalc.com/eu/eu-2028-scraps-e150-import-consignment-threshold-and-ioss-limit/
Will impact e-commerce.
Previous Message
Finland is in the EU so if there is a €150 de minimus the EU must have forgotten to tell Finland about it.
Here in Finland all goods (except books which are circa 10/12% VAT IIRC) coming from outside the EU are charged 26,5% VAT*, except gifts up to €45 (but if over 45 then VAT charged). No exceptions.
*If goods are coming from within the EU then VAT was paid at point of sale.
Previous Message
Then, the bad news for you is that the EU will shortly be ending their €150 de minimus, for almost exactly the same reasons as the US, and making sellers responsible for collection. Was set to go into effect in 2028, but looks like it will happen sooner. Once eliminated, all goods entering the EU will be tariffed. As for the US, de minimis elimination is now law, set to go into effect in 2027, if not already effectively deployed by the latest executive decree.
So, both the US and EU will no longer have any de minimis within 3 years, or less, regardless of how the current situation plays out. One big difference between the EU and US is that the EU plans an electronic overhaul of their system to make it easy to use.
https://www.twobirds.com/en/insights/2024/global/eus-eur-150-customs-duty-exemption-for-b2c-sales-of-imported-goods-is-to-be-abolished
"However, the plan to remove the EUR 150 threshold for IOSS would make all B2C sales of imported goods IOSS eligible (and thus eligible for taxation at the point of sale rather than at import)." (In other words, the seller collects the tax.)
An AI generated overview:
"Yes, the European Union (EU) is planning to end the €150 customs de minimis (duty-free) threshold for low-value consignments, which will largely affect e-commerce packages from outside the EU. The EU aims to implement this as part of its customs reforms, with the change expected to take effect around 2028, though some discussions suggest it could happen sooner. This change is driven by concerns about revenue loss, trade fairness, the influx of non-compliant products, and a large volume of packages overwhelming customs.
Why the EU is ending the €150 de minimis threshold:
Revenue Loss:
The current threshold results in significant lost customs revenue for the EU, with the reform expected to bring in approximately €1 billion annually.
Fair Competition:
Non-EU online retailers exploit the exemption, creating unfair competition for European businesses that adhere to EU product standards and regulations.
Product Safety and Compliance:
Many low-value imports have been found to be non-compliant with EU safety, environmental, and ethical standards.
Increased Workload for Customs:
The sheer volume of low-value parcels has increased the administrative burden on customs authorities.
Fraudulent Practices:
The de minimis threshold is heavily exploited through undervaluation of goods, further exacerbating the revenue loss and fairness issues.
What is the de minimis threshold?
It is the value below which goods imported into a country can enter free of customs duty and taxes.
In the EU's case, it has traditionally been €150 for customs duties and has been the basis for the Import One-Stop Shop (IOSS) scheme for collecting VAT on low-value e-commerce sales.
What will happen next?
Implementation of the Reform:
The EU plans to synchronize customs duty rules with its customs reforms, making online platforms the official importers responsible for collecting duties and ensuring compliance with EU standards.
Simplified Customs Duty Calculation:
The reform aims to simplify the calculation of customs duties for low-value goods by reducing the number of customs duty categories.
Impact on E-commerce:
Businesses will need to adapt their logistics and marketing strategies, potentially consolidating orders, focusing on local sourcing, or managing increased administrative costs for imports."
Revenue loss, increased competition, overwhelming volume (US imported 1.36 billion packages in 2024. I read the the EU as a whole took in over 2 billion that year), safety and compliance, fraud...all the same reasons the US lists for doing this.
So, I find the blatant hypocricy of some posts below rather amusing. Everyone is so focused on the current US action. I wonder if we will see all this same commotion when the EU stops their de minimis.
Previous Message
I can't speak for others, but personally my opposition to tarrifs is mostly for practical reasons: they discourage commerce and competition, reduce economic growth, and harm small business with burdensome compliance costs (just ask any vendor on this board). They also increase prices, a particularly unfortunate outcome as most of the world is currently facing the worst inflation in 40+ years.
Overall, tarrifs have an extremely poor track record of providing the intended benefits but they always come with significant negative externalities.
In this case, the tarrifs are also being used to (partially) backfill an enormous revenue gap that our politicians have blown in the U.S. gov't's budget by handing out enormous tax cuts to centimillionaires, billionaires and multi-billion dollar corporations. So, the tarrifs have the practical impact of redistributing the U.S. federal tax burden down the socioeconomic ladder, increasing the burden on those who already contribute a greater proportion of their income in taxes.
All in all, I think tarrifs are a garbage way for any gov't to try to raise money. But, that's just my opinion.
Previous Message
.......I am rather surpised that many of the folks 'problem' with its removal is not so much the disruption but seems to be at having to pay / not wanting to pay the tax. I mean, really? Had it too good for too long it seems.
And how the intstigators of said new tax / tarrif didnt / doesnt think all the eventually costs to the sender will not be passed on to the American consumer sure beats me.