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AliExpress Prices to Rise 21% from July 2021: EU VAT Changes Explained

Millions of shoppers turn to AliExpress for affordable products. Until the end of 2020, items under €22 arrived without import duties or extra fees. That's changing—with new EU rules, all AliExpress products will cost at least 21% more starting July 1, 2021.

AliExpress and Rising Import Costs

Chinese goods are famously budget-friendly compared to local prices, making direct orders popular for gifts, treats, and everyday essentials. Previously, packages valued under €22 incurred no extra costs. Above €22, you'd pay 21% VAT, and over €150, import duties of 3-4% applied. Customs inspections are random, so not every package was checked.

Update: Implementation has been delayed until July 1, 2021. The Netherlands and Germany have requested further postponement to January 1, 2022, due to logistical challenges.

New EU VAT Rules: 21% on Every Order

From July 1, 2021, all non-EU imports—including from AliExpress—must include 21% VAT upfront. Customs clearance fees (minimum €13, varying by carrier) may also apply. For a €5 item, that's an extra €1.05 in VAT, plus potential fees—quickly erasing savings on low-cost products.

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The End of Easy Dropshipping?

Dropshippers, who bulk-buy from China and resell at markups of 100% or more, face the biggest hit. New rules mandate VAT on all imports, with higher scrutiny and fees. This EU policy aims to curb excessive profit margins and level the playing field.

Tips to Avoid Extra AliExpress Costs

Opt for sellers offering EU shipping from warehouses in Spain, Poland, Czech Republic, or elsewhere in the bloc. Delivery is faster, and you skip VAT and customs fees. EU-stocked items cost a bit more upfront but often save money overall.

Pro tip: Track expenses meticulously. For more advice, visit ZZPdaily.nl.

Upcoming Shipping Cost Hikes from China

Shipping changes too. Free or ultra-low shipping relied on a 50-year-old treaty treating China as a developing nation, subsidizing delivery of items under 2kg. As China modernizes, expect rates to rise at least 150% by 2025.

Opportunities for Local Businesses

Dropshippers may struggle, but entrepreneurs sourcing locally or from EU producers stand to gain. Stock up strategically before changes fully hit.

Impacts on Bol.com and Amazon

Major platforms like Bol and Amazon, flooded with dropshipped listings, will see shifts. Sellers may trim margins or raise prices, prompting consumers to seek alternatives and reshaping assortments.

Consumer Protection or Revenue Grab?

These rules spark debate: extra EU revenue, support for locals, or consumer safeguards? Many Chinese products lack CE certification, posing risks—think flammable electronics cables or disintegrating toys hazardous to children.

No Price Hikes at Budget Chains Like Action

Discount stores like Action negotiate bulk rates and different import terms, so expect minimal impact on shelf prices.

Reading tip: Saving money as a family starts with smart habits.

AliExpress's EU Strategy

Alibaba is building a massive distribution center in Liège, Belgium, to stock goods competitively while dodging VAT and fees. Until it's operational, stick to EU warehouses.

Will you keep ordering from Chinese AliExpress sellers in 2021, or switch to EU options despite the slight premium?