VAT in Europe has always been a topic of debate for many different companies, and AliExpress is also dealing with this kind of stuff. So yes, AliExpress will charge VAT for goods that are sent to EU customers. There are a few things to keep in mind here, as you might imagine. Which is why it makes sense to assess this and ensure that it all works exactly as expected.
How does AliExpress handle EU VAT?
Starting from July 2021, AliExpress is collecting VAT on all sales of goods that are sent to the EU customers. This includes goods coming from outside the EU that are up to 150 EUR and goods shipped from within the EU even if the seller is outside the EU. If the goods are shipped from outside the EU and the VAT is collected by AliExpress, the logistics operators and sellers are including the import one stop shop from AliExpress into the EU declaration. This shows that the goods are released for free circulation without having to be charged with any additional VAT.
When does AliExpress pay VAT?
If the seller registration country is outside the EU and the inventory is within the EU at overseas warehouses, AliExpress always collects and pays the VAT. If the inventory is outside the EU and merchandise value is under 150 EUR, then AliExpress also has to collect and pay the VAT. If the value is over that, then sellers have to handle everything.
However, if the seller registration country is within the EU, then the sellers always need to collect and pay VAT, with only a single exception. That happens if the inventory is outside the EU and the merchandise value is under 150 EUR. At that time, AliExpress will collect and pay the VAT.
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Does AliExpress include VAT in their prices?
This shows you need to pay a lot of attention to the regulations and situation at hand. AliExpress generally includes VAT in the displayed prices, so they will show you exactly how much you have to pay. Which is great because there’s a lot of information to be had and you will find it a lot easier to tackle the entire process. Since the VAT is displayed, it becomes a lot easier to identify the amount you have to pay. Of course, every country has its own VAT percentage, so it might adjust based on where everything ships from.
The VAT topic can be complicated, but AliExpress tries to keep it pretty simple and straightforward. Which is what makes it a great thing, because you get to eliminate concerns and focus on offering a much better result and experience in the end. You always want to ensure that you obey the rules and regulations, and thankfully if you sell on AliExpress you have a straightforward VAT system to abide by. Which is great, because it helps eliminate concerns, while making the entire process simpler and a lot more convenient for all users.