Understanding import duties, port charges, VAT and other taxes is crucial when importing products from China, especially in a time when trade tensions are at an all-time high. However, each country or market have its own import duty rates and customs value calculation methods.
In this article, we explain what every Importer must know about import duties, customs valuation methods, and other taxes when importing products to the following countries and regions.
Imported from Asia to the EU, or selling cross-border? In this guide, we explain what importers, Amazon sellers, and cross-border e-commerce companies must know about the Value Added Tax (VAT) in the European Union.
We also collaborated with Alex Wyatt from SimplyVAT and Dr. Matthias Oldiges from KMLZ, two of Europes leading experts, to create this comprehensive VAT guide.
This is covered
VAT calculations for European importers
VAT rates in EU member states
How and when to pay VAT
VAT registration for EU companies
VAT registration for non-EU companies
VAT when dropshipping products
VAT when selling products online within the EU
VAT registration when selling from overseas to the EU
VAT when selling on Amazon
What is Value Added Tax (VAT)?
The VAT is a consumption tax in the European Union. In B2C transactions, VAT is always included in the price. If you, for example, buy a product online from an EU based online store, the price you pay includes VAT.
The seller can then subtract the VAT paid on imports, from VAT added on top of the sales price.
Below follows an example:
Sales: $10,000 (Including VAT, 20%)
Expenses: $5,000 (Including VAT 20%)
This allows us to make the following calculation.
Sales VAT: $2,000
Paid VAT: $1,000
Total: $2,000 – $1,000 = $1,000
Thus, I would need to pay a VAT of $1,000. If I’d spent more on VAT than I added on top of my sales, I would instead get money back from the state.
Importing products from China to the European Union? Depending on the product, importers are required to ensure full compliance with all relevant CE directives – a process that is far more complex than requesting a test report from your supplier.
In this guide, we explain what you must know about CE marking as an importer:
What is CE Marking?
List of CE Marking Directives
Laboratory testing requirements
We also answer frequently asked questions about CE marking:
Are non-EU companies and exporters required to comply with CE marking rules?
Which products must be CE Marked?
Must all products sold in the EU carry the CE mark?
Is the importer or manufacturer responsible for ensuring CE compliance?
What can happen if I importer non-CE compliant products?
Are all Chinese manufacturers able to produce CE compliant products?
REACH is an EU regulation restricting chemicals, heavy metals and pollutants in all products. Products that contain excessive amounts of restricted substances, such as lead or AZO dyes, are illegal to import and sell within the single market.
In this article, I explain how you can determine if REACH testing is necessary for your products, and the steps you must take to properly ensure compliance. That’s why we invited Compliance & Risks, based in Ireland, for help.
In addition, Compliance & risks – a leading product compliance company based in Ireland – answers some of the most common questions importers have about REACH.
Importing custom designed products from Asia doesn’t always require that you look overseas. In some cases, you can find the best partner closer to home. In this article, we list some of the UK’s leading Asia sourcing and product development companies.
What are the benefits of working with a UK based sourcing company?
If you’re looking to import goods from, for example, China, it’s natural to assume a Chinese sourcing agency know more about their own country – compared to one based outside. While that may be true to some extent, importing products from Asia involves a lot more than finding the right supplier.
Understanding EN standards, or harmonised standards, is an integral part of ensuring compliance when selling products in the European Union. In this article, Ferry Vermeulen of INSTRKTIV explains what an EN standard is, and what you must know to make sure that your products are fully compliant.
1. What is an EN standard?
EN standards are standards that have been developed by a standardisation institute, mandated by the European Commission and are in order to comply with one or more mandatory essential requirements from a specific European directive.
Products that meet the requirements of harmonised standards [applicable in all EU member states] benefit from a presumption of conformity with the corresponding essential requirements.
Generally speaking, harmonised standards contain the following content:
Scope – Describes the field of application of the standard.
Normative reference – Lists the standards that have been used and which are essential for the correct application of the standard.
Terms and definitions – Describes used terms and definitions.
Requirements – Gives detailed requirements on how to meet the more general product requirements from the related directive.
Warnings, markings, and instructions – Describes how to properly instruct users about product risks and inform them about important product characteristics?
Test methods – Describes how to test if a product meets the requirements and how to document this for the technical file.
2. Where can I find EN standards online?
Whereas directives are mandatory and can be freely accessed via the website of the European Commission, standards are voluntary and need to be purchased.