In recent years, ordering inexpensive goods on the Internet (most often from China and the USA) has become a habit for many residents of Cyprus. However, this habit will soon have to be changed.
From July 1, serious changes come into force in Cyprus, as well as throughout the EU when ordering goods from third countries. By the way, the procedure for applying VAT is radically changing and the need to fill out a customs declaration is now introduced.
In other words, now for a parcel from Aliexpress you will have to pay VAT on the whole price and fill out a customs declaration. Postal workers and express service companies are ready to provide their assistance in customs clearance services in the hope that the new rules will not scare away the client.
As you may know, now the VAT in Cyprus is applied to goods with a value of €22+.
But from July 1, VAT will be applied to goods of any value. There will be two ways to pay it - either the seller will calculate the tax when paying, or the tax will need to be paid later when filling out the customs declaration.
Note that up to now VAT has been paid in the country of purchase of the goods, and not in the country of consumption. According to the new legislation, from July 1, VAT will be paid in Cyprus, where the normal VAT rate is 19%.
Also, from July 1, the customs declaration will need to be filled in for all goods from third countries, regardless of their price. Customs tax, which is important, you still have to pay only on goods with a value of more than €150, by filling out another declaration form.
Goods that will not be subject to VAT are gifts worth up to €45. Nevertheless, the declaration for them will still have to be filled out. From July 1, given the fact that the number of customs declarations filed for parcels from China, Great Britain, Russia, Belarus, Ukraine in Cyprus will grow exponentially, postal workers and services are already preparing for the influx of work.
According to the European Commission, the new rules will simplify VAT obligations for companies engaged in cross-border e-commerce activities, and will also contribute to the development of the EU's single market.