Germany to Impose 23% VAT on Parcels from China — What You Need to Know

Germany says it will start charging VAT on many cheap parcels from China. Industry outlets cite a 23% rate and a November 24, 2025 start date. But official confirmation from German authorities is not yet public. Treat the reported date and rate as provisional until you see a government release.

This change ties into a wider EU effort. For years small imports under €150 largely avoided customs duties and sometimes VAT. That exemption, often called the de-minimis rule, let large volumes of tiny parcels enter the EU without routine checks. The result: an influx of low-priced goods and growing concerns about tax loss and product safety.

What changed at the EU level

EU governments agreed to remove the €150 exemption. The aim is to make VAT apply to more imports and to reduce undervaluation and misdeclaration. The move is part of a longer customs modernisation plan. Some pieces are set to roll out over the next few years.

Where Germany stands

Reports say Germany plans to require VAT collection on parcels arriving from China. The 23% figure matches Germany’s standard VAT rate. But how the tax gets collected is not yet clear. There are three main models:

• Sellers collect VAT at checkout using IOSS (the EU import VAT scheme).
• Marketplaces collect VAT on behalf of sellers.
• Carriers or customs collect VAT on import, often on delivery.

Each model shifts the burden to different players. If marketplaces or sellers collect VAT at point of sale, buyers see VAT included in the price, learn more about vat inclusive and vat exclusive formula. If carriers collect on import, buyers might face extra fees on delivery.

Price effects and who pays

If a 23% VAT applies, many low-cost goods will become noticeably more expensive. A €10 item would effectively cost about €12.30 before other fees. Some sellers will absorb part of that to remain competitive. Others will pass the full amount to buyers. Logistics firms will likely add handling fees to cover the extra administrative work.

Why now?

EU finance ministers and customs authorities see a clear problem: huge parcel volumes and widespread undervaluation. Estimates show billions of small parcels enter the EU yearly, with a large share from China. That reduces VAT revenue and undercuts EU vendors. Closing the loophole aims to level the playing field and improve consumer safety.

Operational impact

Expect notable short-term disruption. Carriers will need IT upgrades and new declaration processes. Customs services must scale inspections and boost data exchange. Marketplaces will tighten seller checks and require VAT details. Small non-EU sellers face new paperwork and costs. Delivery times may increase during the transition as systems and staff adapt.

Wider policy tools

Brussels is also discussing a small flat handling fee per parcel. The fee would help cover collection and processing costs. Member states are debating whether the fee should be an EU-level charge or set nationally. That decision affects revenue allocation and implementation timing.

Risks and unintended consequences

There are risks. If countries move at different speeds, the market could fragment. Some shippers may reroute parcels through countries with softer enforcement. Small sellers could be squeezed by compliance costs. Carriers could face backlogs if not properly prepared. Policymakers must balance speed with practical readiness and clear guidance.

Practical steps for stakeholders

• Sellers (non-EU): Check IOSS rules and consider EU registration or local partners.
• Marketplaces: Update onboarding, decide who collects VAT, and show VAT-inclusive prices.
• Carriers: Prepare IT systems, train staff for customs checks, and plan handling fees.
• Consumers: Expect somewhat higher prices and clearer VAT-inclusive pricing going forward.

What to watch next

First, look for an official German confirmation from the Federal Ministry of Finance or German Customs (Zoll); that will settle the 23% number and the start date. Second, track EU Council and Parliament updates on the removal of the €150 threshold and any handling fee decision. Third, watch how major marketplaces respond; their rules will shape the real-world outcome for buyers and sellers.

The bottom line: the EU is closing a long-standing loophole that allowed many low-value imports to avoid VAT. Germany appears ready to act quickly. The reported 23% figure is consistent with Germany’s standard VAT rate, but confirm it with a government statement before treating it as final. If implemented, the change will raise prices on some goods and force big operational changes across e-commerce and logistics.