VAT E-Commerce Rules Change for Non-EU Purchases

Luxembourg's Customs and Excise Agency (Administration des douanes et accises - ADA) has announced changes to value added tax (VAT) provisions for online purchases from non-European Union (EU) countries.

In accordance with Council Directive (EU) 2017/2455, imported goods with a total value of €22 or less will no longer be exempt from VAT from 1 July 2021. This means that all online purchases from non-EU countries will be subject to a customs declaration, as well as the payment of duties and taxes. These include, in particular, customs duties, VAT, excise duties and other taxes.

In customs clearance, the carrier, postal operator or express operator will most often require related costs such as presentation costs or costs of completing customs formalities. He / she will invoice and collect these fees for the purposes of establishing the customs declaration.

The ADA is responsible exclusively for the collection of customs duties, VAT and other taxes, such as excise duties.