Online shoppers in EU states are buying fewer goods from outside Europe. It’s all to do with new VAT rules.
A consumer association study reveals that 44% of respondents are buying fewer goods from outside the EU. This follows the decision by EU lawmakers to scrap the VAT exemption on low value goods. Previously, goods valued at less than €22 were not subject to import VAT. As of 1 July 2021, all goods are subject to VAT.
The findings echo recent research that shows e-commerce shoppers in the EU have been affected by increased prices and new customs charges.
For businesses that drop ship goods to customers in the EU, the new VAT rules present a challenge.
Source: vatglobal.com
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