According to information on the website of the China Chamber of Commerce for Import and Export of Machinery and Electronic Products (CCCME), Germany has officially implemented a new tax policy targeting cross-border small-value parcels from China starting November 24, 2025.

All e-commerce parcels from China will be uniformly levied a 23% value-added tax (VAT), with the previous minimum tax exemption threshold fully abolished. The German government stated that this policy aims to protect domestic industries and curb the influx of “low-quality Chinese goods” into the European market.

According to data, nearly 70% of international small parcels entering Europe in 2024 originated from China. An assessment by Germany’s fiscal authorities indicates that the annual VAT gap caused by tax-exempt small parcels has exceeded 10 billion US dollars.

After the implementation of the new policy, small and medium-sized sellers relying on the “low-price small-parcel” model may face the dual challenges of profit compression and increased compliance costs, while Germany’s customs clearance process may also encounter efficiency issues due to the surge in declaration volumes.

This policy marks a significant transformation in the taxation environment for China-Germany cross-border e-commerce trade. It is expected to raise the average selling price of Chinese goods in Germany by 23%, directly impacting the market competitiveness of Chinese cross-border sellers.