s3nki by March 2022, 24 | 0
Yet the era of cheap online ordering is not over!
From 1 July, the duty-free treatment of products under 22 euros has been abolished, and almost nothing has changed yet.
Introduction - or background
In the prehistory of web commerce, the € 22 threshold was introduced. During this time, we did not have to pay VAT, customs or other costs if we ordered from outside the EU and the value of the order (including shipping and other fees) did not exceed € 22. However, over the past many, many years, the world has changed greatly, and year on year, online sales are expanding at a rapid pace, including the number of orders from Chinese stores.
The growing number of orders, the tricks of Chinese traders with the values on the package, have caused EU member states to lose more and more revenue every year, so something had to be done. EU policymakers cut through the Gordian knot by abolishing the € 2021 limit from 1 January 22, but due to the pandemic, that date was finally postponed to 2021 July 1.
Now that we’re past the first day of July, we can already see that the terms of our orders have changed, and overall, those who have so far purchased Christmas presents from a Chinese store well below domestic prices, for example, still don’t have to worry. The possibility remained for some stores, and we do not have to reckon with significant price increases or significant customs (VAT) burdens.
How can a Chinese store stay cheap anyway?
At the same time as the new customs rules, the EU set up an electronic system for non-EU traders to register. This is called IOSS, which is an acronym meaning Import One-Stop Shop. In practice, this works by the store selling us the product, at the price of which it includes the amount corresponding to the VAT rate of the destination country (where the buyer lives). This VAT content is paid by the seller through the IOSS system to a central account from which the EU distributes the incoming tax to the member states.
Larger stores are, of course, registered in the IOSS system, so from now on they will indicate if VAT is included in the price of the given product. For us, this means that we have to reckon with a maximum customs clearance fee when the product arrives, which is banded, was designed depending on the price of the product.
From the beginning, the question was how stores would incorporate VAT into their prices. Some have seen a slow rise in prices since the beginning of the year, others have taken on most of the extra cost, so we are not experiencing essentially any price changes. The worst case scenario is when now, overnight, everything has become 27 percent more expensive, such as the complete Aliexpress.
What about EU warehouses?
Many waved when it came to rising prices. They said everything from the EU warehouse would cost the same. Well, they were partly right, but only partly. For some stores, there really was no change, and for others it was. The latter includes, for example, the aforementioned Aliexpress, where all products, regardless of warehouse, have become 27% more expensive, even in EU warehouses.
Where to buy then?
Of course, in stores where we have to reckon with the least possible extra cost, such as one of the largest stores in China, the Banggood too!
Let's see what changes have taken place with them!
The first is that from now on the products will indicate whether the price includes sales tax (VAT) or not. I have never come across a product that would not have included it. The good news is that all that has changed is the inscription, Inclusive of VAT, but prices have not gone up a bit.
However, in order to take advantage of the above-mentioned IOSS system, i.e. the vendor, in our case the Banggood pay the VAT instead We have to pay attention to the mode of transport we choose!
A Banggood The two most important free shipping methods are the EU Priority Line, which can be used at Chinese warehouses CN, HK and GWTR, and the European Railway Direct Mail, which can be used from the CN warehouse for larger products (such as electric scooters). According to the seller, we do not have to pay extra customs duties or VAT for these modes of transport. Unfortunately, the fee for customs clearance is also paid by us by the Post Office in such a case.
Make sure that the Tariff Insurance line (Fee Insurance on the Hungarian side) is checked!
A small proportion of consignments over € 150 are subject to customs duties. However, this applies to a very small part of the products (e.g. perfumes), most of the technical items (e.g. phone, tablet) can be imported duty-free or ordered, even from a Chinese store.
What about the Banggood with European warehouses?
A Banggood has opened plenty of EU warehouses over the last 1-2 years, in preparation for the new rules, which will apply from 1 July. We can now order from Czech, Polish, Spanish or French warehouses.
A Banggood In the case of EU warehouses (CZ, PL, ES, FR), the seller assures us that we will not experience any change compared to the situation before 1 July, ie we only have to pay as much as we see on the product page, there will be no extra cost.
For the time being, this is also shown by the packages received in recent days. In our Facebook group, members reported that when ordering from an EU, such as a Polish warehouse, the package arrived exactly as before, no one had to pay any extra costs.
What happens if, for some reason (mistake), our package is still presented to customs and VAT is paid to us again?
In such cases, the seller, i.e. Banggood we have to send the invoice to the customer service, that is, the exact proof of the payment of the VAT, and the store will refund it to us, taking over the administration as well. However, we would like to draw your attention to the fact that the customs clearance fee will not be reimbursed.
What promotions are waiting for us now?
Although summer is raging, which is perhaps the deadliest in terms of trade, at Chinese stores, so Banggoodat there is no stopping either!
Right now, two promotions are starting right now, which are specifically for us Hungarians, and the third is a very favorable mobile phone promotion, in which we can buy dozens of phones at a friendly price. Let's see the details!
In the first promotion, we can find discounted prices for us Hungarians. On the site you will find the most purchased products from Hungary, ie the most popular products, the latest products, and every day we also receive a special offer, in which we could buy an electric pump for HUF 3000, for example.
The special page opens by clicking on the million rewards image above!
In the second promotion, the cost of delivery is waived by the company. The products on the site are delivered to us free of charge, with this we can often save thousands of forints per product! The promotion page is opened by clicking on the image of the branded products above.
The third phone promotion does not have a separate subpage in the store. You can access the currently available promotional devices, prices, and coupon codes by clicking on the link below. You will also find links to the products in the table, click on them to buy!
Click here for phone promotions:
Importantly, the above cannot be applied uniformly to all Chinese stores. In our Facebook group, we are constantly updating the post, which shows the conditions under which we can order per store.
Join the group here:
You can read Banggood's detailed regulations in connection with the changes in the EU customs regulations here: