New regulations within the United Postal Union (UPU) require changes to VAT in 2021 for all cross-border shipments; European consumers will pay their country’s VAT on all items purchased outside the EU. This regulation has enormous impact on current international eCommerce business, a veritable earthquake for Asian behemoths such as Ali Express or Wish, selling cheap single items to European consumers, now VAT free. The information is highly complex, technical and often seen as dry but needs to be communicated in a way that leaves no room for confusion, as postal operator will bear the full cost of returning unclaimed items to their country of origin (EU consumers will retain their right to refuse).
