In an effort to boost domestic competitiveness, the European Commission is considering removing the €150 threshold that allows consumers to buy any product on platforms such as Temu and Shein without having to pay taxes.
According to data handled by the European Commission, during the year 2023, 100,000 tons of tobacco were imported into the EU 2.3 billion items under the threshold of 150 euros which is currently tax-free. A volume large enough for the European Commissioner to have begun to investigate the impact that such operations have on internal trade.
According to information published by the Financial Times and picked up by the newspaper Expansión, Brussels is working to present a plan that would allow taxes to be imposed on products that we buy through platforms such as those mentioned above. The measure is taken in response to the increase in low quality products from China that are penetrating the European market.
Different options
By removing this threshold, any online platform that ships to customers in the European Union from outside the bloc would have to assume the corresponding taxes, regardless of the value of the product. In the case of the United States, for example, the e-commerce giant often relies on European-based vendors to do the same.
It is worth noting that China is currently benefiting from a subsidy on shipping costs that allows shipping is profitable of products using air means, regardless of the amount thereof. According to the same media cited above, another possible measure would also be to force large platforms to register so that they can be make the VAT payment online, regardless of the value of the product. It is worth remembering that the European Commission itself had already attempted to do something similar last year. However, it was in the wake of the wave of cheap imports that the commissioner considered the option of speeding up approval as soon as possible.
Dangerous products
One of the examples cited in the published information concerns the dangerous nature of certain products, as is the case with the toy industry. Toy Industries of Europe, one of the most important groups in the sector, stated that it had purchased a total of 19 toys to Temu and that, after carrying out the relevant analyses, it had been discovered that none of them complied with European Union regulations.
Of all of them, a total of 18 presented a real risk for the safety of children when interacting with them. After this event, Temu stated that none of the products were sold on the platform anymore, so they had taken measures at the time this situation was detected. In addition to showing their concern for guarantee the security of all the products they sell from the platform itself.
Although there has been no official confirmation from the European Commission at the time of writing, the proposal is expected to be made by the end of July.
