November 18, 2025 – Important notice for valued clients: A new tax policy targeting cross-border small parcels from China will take effect in Germany on November 24, 2025, which is expected to impact product pricing.
According to official announcements, all e-commerce parcels shipped from China to Germany will be subject to a unified 23% Value-Added Tax (VAT) under the new regulation. Notably, the previous minimum tax exemption threshold for small-value parcels will be fully abolished, marking a significant shift in the tax framework for Sino-German cross-border e-commerce trade.
The German government stated that the policy aims to address the VAT revenue gap, which has exceeded 10 billion US dollars annually due to tax-exempt small parcels. Data shows that nearly 70% of international small parcels entering Europe in 2024 originated from China, prompting regulatory adjustments to balance market competition.
For our clients, this policy means cost adjustments in the supply chain. As the 23% VAT will be incorporated into the total cost structure, product pricing for Chinese cross-border shipments to Germany is expected to increase accordingly. We are currently evaluating the specific impact on different product lines and will provide updated pricing information in a timely manner.
We remain committed to minimizing disruptions for our clients. Our team is proactively optimizing logistics and tax compliance processes to mitigate cost pressures. For any inquiries or further clarification on how this policy affects your orders, please feel free to contact our customer service team.