He who ordered things from China could have saved a lot. If you couldn’t get something at home, or only it was disproportionately expensive, it was enough to go to one of the pages that might seem suspicious at first, but otherwise reliable, and you could already choose from dozens of gadgets and parts for pennies.
Absolutely no matter if it was some kind of chip, hard drive case, GPS adapter, spare battery or even dishwasher tray rollers, if you needed something, it could definitely be ordered from China. The popularity of online ordering was not only due to the low prices, but also to the fact that most distributors offered free shipping – of course there were pitfalls, such as the fact that the delivery time typically ranged from 4 to 8 weeks.
The only downside is that the rules for orders outside the EU have been open to a great deal of abuse; by tricking the value of the goods, VAT is in many cases “lagging” even if, in fact, the product should have already been taxed. According to the last regulation in force today, all ordered products are only VAT-free up to a value limit of EUR 22 and duty-free up to a value limit of EUR 150.
It is obviously in the buyer’s interest not to pay taxes or duties, but Due to the physical distance and the loose cooperation of the authorities, distributors were also very willing to indicate a lower than actual value on the packaging, which had already given them an unfair competitive advantage over EU distributors
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The National Tax and the Customs Office also explained why the regulation was changing, as well as the loss of revenue due to tax (and customs) evasion. It is important to note that the amendment is not a Hungarian initiative, but a European one, so it applies to all EU countries (with so many differences, of course, that the VAT rate is different in all EU countries). And, of course, it applies not only to Chinese orders, but to all packages coming from outside the European Union.
The most important change is the abolition of the EUR 22 threshold, so that all products arriving from outside the European Union will be subject to VAT from 1 July 2021.
Unfortunately, however, mandatory VAT is only one of the cost-increasing items. Worse news is that it will also be mandatory to lodge a customs declaration for products below the € 150 threshold. Customs clearance under EUR 150 will not be performed by NAV, but by Magyar Posta, and the procedure will also incur costs, as follows:
- up to the value limit of EUR 10 HUF 399/799
- up to the value limit of EUR 22 HUF 499/899
- 50 up to the value limit of EUR 599/999 HUF
- Up to the value limit of EUR 100 HUF 899/1399
- up to a value limit of EUR 150 HUF 1399/1899
The first price is online and the second value is valid for cash on delivery
Traders otherwise have the option to register for the EU IOSS; in this case, VAT is included in the purchase price by the distributor and later paid into the EU coffers. From the customer’s point of view, this means so much ease that in such cases the customs clearance fee is uniformly HUF 399 (or 799 for cash on delivery) up to a value limit of EUR 150.
It is a fact that the cheap world is over, but it does not necessarily mean that it is no longer worth ordering from abroad – but the price advantage will certainly decrease. VAT will hurt in all cases, but the customs clearance cost will have a rough effect, especially for orders of lower value: the package of HUF 1,000 today will cost HUF 1,699 from tomorrow (+ 66.9%), but instead of HUF 50,000 for an order close to the value limit of EUR 150. ” only “29.8% more, 64899 HUF will have to be paid.
In addition to the increase in costs, another important aspect should be taken into account by those who want to order recently. The customs clearance of the Hungarian authorities has been legendarily slow so far, so the question is how long the new regulations will prolong delivery times. Hopefully not in the long run, because the customs clearance will not be done by NAV, but by Magyar Posta, and the preparations have been going on for a long time, with steam power. However, due to the high number of shipments in the first period, interruptions can easily occur, so whoever can do it may want to wait a few weeks or even months.
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