It used to be simple. You ordered something online from abroad—under a certain price—and boom, no taxes. Tourists flying home could grab luxury goods and get the VAT refunded. It was clean, fast, and kind of a cheat code for global shopping.
But that era’s closing. Fast.
Governments are done losing billions to untaxed online orders. From the US to Vietnam, tax-free thresholds are shrinking. Tourist refunds are getting complicated. And big platforms? Now being told they need to collect and pay the tax.
This isn’t just policy talk. This is the new front line of e-commerce. Every international order now comes with rules, friction, and costs. And if you’re selling online, you better know where the red lines are.
What the experts are saying
Reuters reports that the U.S. officially ended its $800 tax-free import rule for Chinese sellers in May 2025. That means Temu, Shein, and every “cheap from China” player now face tariffs. It’s a direct shot at fast-fashion giants and a signal that global shipping just got pricier.
The Times UK covers how luxury retailers are begging the government to bring back VAT-free shopping for tourists. Since Brexit, Britain scrapped that benefit. Now stores in Paris and Milan are taking high-spending shoppers away. The UK’s e-comm and tourism markets are bleeding out.
Our take
This is e-commerce. Taxes decide what gets bought, where, and by whom. A shopper in Switzerland or Vietnam? Now faces taxes on orders above $150 or even $40. It’s no longer just about price or product. It’s about tax calculus.
If you ship global and you’re not watching these shifts—you’re bleeding margin or risking compliance. Or both.
3 Action Steps You Need to Take
1. Use real-time tax software.
Plug into tools like Avalara or TaxJar. These platforms track VAT, de minimis, customs rules per country. You set rules once. It handles the math.
2. Rethink shipping thresholds.
If you sell into countries like Switzerland or Turkey, bundle products just under their local tax-free cap. For example, sell CHF149 packs in Switzerland or ₫990k sets in Vietnam.
3. Market tax refunds as a perk.
Selling to tourists or digital nomads in the UAE or the Philippines? Flash your eligibility for e-VAT refunds. Tourists will spend more when they know they’ll get some back.
Tax rules aren’t red tape. They’re the new battlefield of e-commerce. Get smart. Get compliant. Or get left behind.
Written by Karina Martirosyan
