Aliexpress EU Duty 3 euro

[jarlen89]

Hello

Does any of you know something about the new 3 euro duty on every item bought from outside EU?
I have noticed that Aliexpress charges me 3.75 euro in duty. I think this equals 25% VAT on top of the 3 euro duty, but i think this is a mistake? There should be no VAT on the 3 euro duty for IOSS web shops? Or what? Does anybody know something about this?
And have anybody else experienced this after July 1? 

[hubba]

Yes at least in Finland this is the new law. You pay 3e extra for every item group that is under 150e.
So if you buy 5 clothing items it should be just 3e extra but it doesn't always work like that. I seem to end up paying that 3e extra for every item even if they are similar.

[jarlen89]

Yes i know you should pay 3 euro per item, and i'm fine with that. But Aliexpress seem to add VAT (25% as i'm from Denmark) to the 3 euro making it 3.75 euro in total duty per item.


I don't think they should add VAT to the 3 euro duty as it is IOSS

[Dan S.]

For me, they add around 4.07 USD. Which is roughly 3.56 EUR. I guess it’s a good-bye to cheap stuff. You add few things to the cart and you are hit with almost a 50% markup. Stupid EU.

[hubba]

Yes i know you should pay 3 euro per item, and i'm fine with that. But Aliexpress seem to add VAT (25% as i'm from Denmark) to the 3 euro making it 3.75 euro in total duty per item.


I don't think they should add VAT to the 3 euro duty as it is IOSS

Oh sorry I didn't read your post properly. Yes I wondered too why it's more than 3 euros.

[hahel]

Oh sorry I didn't read your post properly. Yes I wondered too why it's more than 3 euros.

It's probably by the goverment rule book, VAT is usually calculated on the total cost of the purchase including shipping and customfees.
IOSS is simply a way charging the calculated VAT direct on purchase and the seller is then responsible for transfering the funds to your( the buyers) national TAX authorities.

[jarlen89]

It's probably by the goverment rule book, VAT is usually calculated on the total cost of the purchase including shipping and customfees.
IOSS is simply a way charging the calculated VAT direct on purchase and the seller is then responsible for transfering the funds to your( the buyers) national TAX authorities.

Yes but i think that Aliexpress has got it wrong. As i understand it, there should be no VAT on the 3 euro duty when IOSS is used: https://www.globalvatcompliance.com/globalvatnews/eur-3-customs-duty-vat-treatment/

I know it is a small amount on every item, but it's something to be aware of.

[voidptr]

VAT gets deducted afterwards.

What happens when you return an item now?
Do you receive the full amount incl. the new custom charge?

[Dan S.]

VAT gets deducted afterwards.

No, it doesn’t.

[maxpet]

and also it should be per product group and not per single item

[Dan S.]

and also it should be per product group and not per single item

Correct, that is how it should be according to the new "law". However Aliexpress will charge you the duties wrong. Seems like they charge it per seller (and item as well) which is incorrect. Here is an example, 3 silicone straps for Fitbit Air from 3 different sellers. Technically should be considered one HS code, however I am being hit with the duty 3 times. 

[jarlen89]

Correct, that is how it should be according to the new "law". However Aliexpress will charge you the duties wrong. Seems like they charge it per seller (and item as well) which is incorrect. Here is an example, 3 silicone straps for Fitbit Air from 3 different sellers. Technically should be considered one HS code, however I am being hit with the duty 3 times. 

Yes they are doing it completely wrong. Both with VAT on the 3 euro duty, and charging pr. item in same product group.  I have tried being in contact with their support, and escelated it to customer care. But they just reply to everything with "Please refer to the local policy for details."  
If everybody makes a case about this maybe they will change it.

[SirBikealot]

seems like they made the first adjustments.
had a few wristbands for my garmin in the basket all 3,99$ per item.
Just wanted to check again and tada, now it's only 3,99$ for all 4.

[ZacItaly15]

the +3€ mechanism if not so clear. It 's applied based on "categories" so the same item can be catagoryzed in different way and you get different duties.

I tryed to add and remove items and the duties may change from shop to shop
It's crazy