Hello cyclists and welcome back to our blog this week. Today, Esoulbike is going to talk about the impact the joint EU value-added tax reform has on online shopping with respect to customers.
To give you a clear sense of what’s happening, the EU VAT reform had already taken effect in every member state of the Union on 1 July 2021. This reform will affect online shopping significantly as purchases shipped from outside of the EU are now subjected to VAT and customs clearance. The current limit of 22 Euros customers and businesses have enjoyed has been removed, replaced by stricter regulation.
In terms of this new regulation’s impact on online shopping and customers, things are getting more expensive. In the past, since many businesses and online platforms/stores are free from regulation, they had developed a price advantage to offer cheap products at the expense of low tax or tax evasion. But that will no longer be the case for many of them, assuming that they couldn’t adjust.
Specifically, since July 1st, e-commerce such as Amazon, eBay, Aliexpress are all required by the regulators to submit reports. If they have local stores within the Union’s territory, they will have to register the local VAT tax number. All orders they receive from the customers will have to pay their taxes based on the local tax rate. The implications for the customers, certainly, since business leaders such as Jeff Bezos are more interested in outer space than the earth, are that everything is more expensive, whether it comes with great quality or poor one.
But the good news is that Esoulbike’s price is fixed and will stay where it is. This is because Esoulbike’s original prices for the kits and batteries have already contained the element of taxation. We will not increase our price in this way despite that many of our competitors might have done/ will do so in a minute. So the price you see right now from Esoulbike is the same one it was before and will remain the same in the near future.
Thus, dialectically speaking, if you purchase our product right now, it’s getting cheap for you.
Once again, you’re welcome to take a look at our products on the website. Esoulbike offers great electric batteries and kits for cycling community.