France is currently at the centre of a tax debate affecting European e-commerce: the proposed increase in taxes on small imported parcels. Industry groups warn that unilateral national measures could undermine competitiveness if they diverge from broader European Union frameworks. This discussion reflects broader changes in EU customs policy, evolving dynamics of cross-border online retail, and growing regulatory scrutiny of global marketplaces.

France’s Proposed Parcel Tax Increase

French policymakers have explored raising a national levy on low-value parcels entering the country, with some proposals suggesting increasing the charge from around €2 to €5 per parcel. Industry associations such as the Fédération française du e-commerce argue that a higher national tax could backfire economically by diverting logistics flows to neighbouring countries with lower charges.

France has also moved ahead with implementing a handling fee of about €2 on low-value imports under €150, aimed at covering customs administration costs and addressing the rapid growth of cross-border e-commerce shipments.

The concern among e-commerce stakeholders is that if France acts independently rather than aligning with EU-wide policies, companies may route parcels through other European hubs, reducing French tax revenues and weakening local logistics ecosystems.

Alignment With EU Customs Policy

At the European level, the EU has agreed to introduce a temporary €3 customs duty on low-value parcels entering the bloc starting in July 2026. This measure is intended to address competitive imbalances between European retailers and non-EU online sellers shipping inexpensive products directly to consumers.

The reform also aims to phase out the longstanding exemption from customs duties for parcels valued under €150, which policymakers believe has favoured overseas e-commerce platforms over EU-based businesses.

Industry advocates argue that national taxes exceeding EU-level charges could fragment the single market, contradicting the goal of harmonised trade rules across member states.

Competitive Concerns for French E-Commerce

E-commerce organisations warn that higher national parcel taxes could produce several unintended effects:

Logistics Diversion

International sellers might reroute shipments through neighbouring EU countries with lower taxes, then distribute goods internally within the single market.

Revenue Loss Risks

Some industry estimates suggest France could lose significant revenue if parcels bypass its ports and logistics infrastructure due to higher fees.

Competitive Disadvantage

Domestic retailers and logistics providers could face higher operational costs compared with businesses operating in countries with aligned EU taxation levels.

Wider European Context

Other EU countries have considered similar measures. Belgium, for example, has explored introducing parcel fees targeting imports from outside the EU, partly to address budget deficits and regulatory enforcement costs.

Meanwhile, the EU-wide push to regulate low-value imports reflects broader concerns:

• Rapid growth of cross-border e-commerce shipments, especially from Asia
  
• Market distortion caused by duty-free thresholds
  
• Consumer safety, counterfeiting, and regulatory compliance issues
  

These factors have accelerated momentum toward coordinated EU policy rather than fragmented national approaches.

Impact on Consumers and Retailers

For consumers, parcel taxes could increase prices on imported low-cost goods. For retailers and marketplaces, the implications include:

• Potential restructuring of logistics networks
  
• Changes in pricing strategies
  
• Greater emphasis on EU-based fulfilment centres
  

These developments may also encourage localisation of supply chains within Europe.

Future Outlook for EU E-Commerce Regulation

The French parcel tax debate highlights a broader trend toward tighter regulation of cross-border e-commerce in Europe. With the EU moving toward harmonised customs rules and the removal of duty exemptions, national initiatives that diverge from EU policy could face resistance from both industry and policymakers.

Ultimately, the balance between protecting European retailers, maintaining competitive logistics hubs, and ensuring fair trade conditions will shape the next phase of EU e-commerce regulation.

The post France Parcel Tax Debate: Impact on E-Commerce Competitiveness in the EU appeared first on Cross-Border Magazine.

Spotify, Booking, Glovo, and fifteen other tech companies address a letter to European finance ministers expressing their dissatisfaction with the IDSD, stating that it is a "disproportionate impact" and that the system creates inequality of conditions.

According to estimates published in 2020 by the organization, the global tech tax would collect around $100 billion annually. The IDSD does not tax profits but rather gross revenues, applying it regardless of the company's profitability. The signed First Pillar aims to avoid double taxation, but the IDSD creates a multi-layered taxation system without compensation mechanisms with other taxes. Additionally, it is accounted for as a charge, affecting EBITDA operating income and the companies' accounting.

"These actions may include adverse and arbitrary taxes on the business volume or local operations of foreign companies in those countries, further impacting companies' ability to grow and compete on an equal footing," the companies add in their letter.

IDSD can 'create trade tensions and impact customers'

The companies argue that the IDSD can lead to trade tensions, retaliatory measures from other countries, and impact customers. 

Spotify, Booking, Glovo, Eat, AirHelp, Allegro, Catawiki, Criteo, Delivery Hero, Schibsted, Trustpilot, Vinted, Wolt, and Zalando have also warned that all these contingencies can result in price increases for consumers to absorb better and make the tax impact more profitable.

Furthermore, they add that these taxes "risk proliferating," leading to increased detrimental effects on businesses. This would gain more strength without a consensus on the 'First Pillar,' currently under negotiation at the Organization for Economic Cooperation and Development (OECD) for future global tax reform. Under this pillar, activities of companies in countries where they generate profit would be taxed, even if they do not have a fiscal presence.

The post Tech giants raise their voices against the IDSD tax or 'Google Tax’ appeared first on Cross-Border Magazine.

According to the new Platform Tax Transparency Act - DAC7 - online marketplaces such as Amazon, eBay, and Vinted will now have to report sales made on their platforms by end users to the tax office. 

This is part of a new set of EU legislation to keep e-commerce fair and avoid possible abuse of privileged positions, monopolistic practices, or tax evasion. Private sellers will be reported when they make over 2,000 euros or have over 30 transactions per year.

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Technically, the DAC7 was supposed to force online marketplaces to report European users' sales starting this January 1st. Yet, for many European countries, the deadline has been pushed to the end of Q1.

What changes will the DAC7 bring?

DAC7 directive will mean that operators of digital platforms such as Amazon, Airbnb, or eBay are obliged to apply due diligence rules and comply with specific registration and information provision obligations. 

Thus:

- They will have to apply rules and procedures on sellers to obtain specific data to comply with the provision of information to the Tax Administration.

- The activities affected are the so-called "relevant activities", namely leasing and temporary assignment of real estate and means of transportation, personal services, and sale of goods.

- They will be obliged to register in the census.

- Likewise, they will have an obligation to provide information to the Tax Administration. Sellers that are public administrations and listed entities are excluded from this information.

- The information obtained will be exchanged with the seller's Member States of residence and, in the case of leasing or transfer of use of the real estate, with the Member State where the real estate is located.

- Due diligence procedures will be implemented to ensure the veracity of the above data, particularly those relating to the seller's residence.

- Joint inspections at the European level will be included, involving simultaneous controls and the mobility of tax officials between Member States.

- It is planned to include a penalty regime for these reporting obligations. 

Among other main points. 

Some marketplaces are excluded

Marketplaces that can prove that the information has been communicated by other operators - being them only a transition marketplace - or that are registered in non-European jurisdictions where international treaties or conventions apply (the information is sent to all Member States), are excluded from the DAC7.

Finally, the provisions relating to joint inspections will start to apply as of January 1, 2024.

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Starting a business in a different country is never easy. One of the requirements for Switzerland is that you have to be a Swiss resident, or have a Swiss legal entity or have a Swiss partner. It is also essential that you understand the legal structure.

Taxes for online retailers

In order to directly charge the Swiss VAT to Swiss customers, a foreign online retailer will have to be declared as a VAT-registered company in Switzerland. To achieve this, they will need fiscal representation there.

Being registered as an online shop for VAT purposes, without a permanent establishment but through fiscal representation, has the following consequences:

• The delivery is viewed as domestic and is therefore subject to the domestic tax for the supplier.
• The foreign online merchant will be considered as an importer and must pay the import tax accordingly. The standard 7.7% will be invoiced to the domestic customer as it would be for a normal Swiss company.

Value-added tax

When registering for VAT purposes, online merchants must indicate that they will act as an online retailer. They will also have to comply with being published on the list, which avoids complaints and burdens from customers.

Import tax

The standard tax rate in Switzerland is 7.7% at the moment, which is the same as on domestic purchases. Daily necessities, or basic needs such as food, are subject to VAT at the rate of 2.5%.

Import taxes can be claimed as an input tax, under certain conditions, which is the opposite of customs duties. If it is not possible to pay monetary value when importing an item, the import tax will be based on the market value of the product. The day before declaration, foreign currencies will be converted into Swiss Francs at the exchange rate of that moment.

Customs

Every import needs (at least) one invoice, which has to contain the following information: name and address of the exporter and importer, delivery address, place and date of issue, marking, number, quantity and type of packages, net and gross weights, dimensions of the packages, exact description of goods, preferably with customs tariff number, quantity, price, delivery and payment terms and finally,  country of origin.

Essential for import is the customs tariff number, which is used to classify a product. These numbers are established through custom duties, and import duties are determined based on this number as well.

Download the full whitepaper on Swiss e-commerce, taxes and duties below. Read a complete interview with Gerrit Schröder from GJS Consulting in the latest instalment of Cross-Border Magazine. 

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The post Crossing the Swiss border: changes, customs and taxes in a fast-growing market appeared first on Cross-Border Magazine.

Why?

The ultimate purpose of VAT/GST is to impose a broad-based tax on final consumption by households. Typically, VAT/GST is collected through a staged process, which means that each business in the supply chain charges VAT/GST to its customer, regardless of whether the customer is a private individual or a business. In that sense, businesses serve as unpaid tax collectors for the government. They pay to the competent tax authorities the VAT/GST which they charged on their supplies and received from their customers. Since it is not the purpose of VAT/GST to tax businesses, VAT/GST systems employ mechanisms for relieving businesses of the burden of the VAT they pay when they acquire goods or services.

Two methods

Basically, there are two methods to achieve a neutral result for businesses. The first one is the so-called “invoice-credit method”. In this methodology, each supplier in a supply chain charges VAT on each of its supplies. This amount is shown on the invoice to the customer. In his turn, the customer can credit that input tax against the output tax charged on his supplies if he is legally a business as well. Then, the customer remits the balance of the input and the output tax to the tax authorities. He receives a refund if there are excess credits.

The second method is the "subtraction method", which is effectively an accounts-based method. However, this method is not used that often as almost all jurisdictions that employ a VAT use the invoice-credit method. As a matter of fact, within the Organization for Economic Co-operation and Development (OECD), only Japan uses the subtraction method.

For more information on VAT/GST and other ecommerce related topics, please visit the Online Taxes & VAT topic on EcommerceWiki.

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