Germany to Impose 23% VAT on Parcels from China, Eliminating Tax Exemption from November 24th. According to reports, Germany will officially implement a new tax policy for cross-border small parcels from China starting November 24, 2025. All e-commerce parcels originating from China will be subject to a uniform 23% VAT, and the previous minimum tax exemption will be completely eliminated. This policy marks a significant change in the tax environment for Sino-German cross-border e-commerce trade, and is expected to lead to an average price increase of 23% for Chinese goods in Germany, directly impacting the market competitiveness of Chinese cross-border sellers. The German government stated that this move aims to protect the development of its domestic industries and curb the influx of "low-quality Chinese goods" into the European market. Data shows that nearly 70% of international small parcels entering Europe in 2024 originated from China, and the German Ministry of Finance estimates that the annual VAT shortfall caused by tax-free small parcels exceeds tens of billions of US dollars. After the implementation of the new policy, small and medium-sized sellers relying on the "low-price small parcel" model will face the dual pressures of compressed profits and increased compliance costs. German customs clearance processes may also experience efficiency problems due to the surge in declarations. This policy is controversial both domestically in Germany and within the EU, with consumers worried about increased shopping costs and industries such as automobiles concerned about a chain reaction triggered by trade frictions. China has previously expressed its opposition to such protectionist trade policies and suggested that sellers mitigate the impact by connecting to the EU OSS declaration platform and establishing local warehousing in Germany.

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