No more bargain deals from China: VAT must be paid on all goods from outside the EU

Danish consumers have been enjoying shopping for low cost and inexpensive goods from China but these bargain deals are about to end soon. From 1st of July onwards, the EU has decided that VAT must be paid on all goods purchased in countries outside the EU which account for a 25 percent VAT addition, media Copenhagen Post reports.

On top of the added VAT, goods from outside the EU will also come with an added delivery fee. According to Copenhagen Post, Danish consumers can look at having to pay an additional DKK 150 to DKK 250 for delivery alone. The rules were unanimously voted in favor by Parliament last year and originally planned to come into force on 1 January 2021 but were postponed to 1 July because of the pandemic.

The new rules will benefit the Danish postal company Postnord because as of now, when products are sent from China, the postage costs don’t cover the Danish carrier’s end.

Although the new rules will start on 1 July, remember that everything that arrives into Denmark after 1 July will be charged accordingly to the new rules, even if they were purchased before 1 July.

Another advice is to double check the delivery terms carefully because even if an online store has an address within the EU, your package could still be sent from China or another non EU country.

About Mette Larsen

ScandAsia Journalist • Scandinavian Publishing Co., Ltd. • Thailand

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