Non-EU online marketplaces potentially causing revenue loss for Romanian retailers due to unpaid taxes
Romania is preparing to tackle significant tax losses caused by the expansion of non-EU e-commerce platforms, with a new levy on parcels expected to generate additional revenue and level the playing field for local retailers.
According to an impact analysis by the Romanian Association of Online Stores (ARMO) and independent analyst Iancu Guda, non-EU e-commerce platforms selling directly to consumers in Romania could generate tax losses of approximately €2.12 billion per year by 2027. This estimate is based on a planned levy on parcels valued below €150 imported from extra-EU online platforms such as Temu and Shein.
The levy, set to be implemented by 2027, aims to capture revenue from about 225,000 parcels daily entering Romania from such platforms. The potential impacts on local retailers and the public budget are significant.
On the public budget front, the levy could generate significant additional revenue, helping to reduce tax losses currently attributable to cross-border e-commerce from outside the EU. However, tax authorities face challenges from possible tax avoidance by platforms rerouting shipments through neighbouring countries, which could reduce expected revenue.
Local retailers may face competitive pressure from cheaper goods offered by non-EU e-commerce platforms. Imposing the tax could level the playing field by partially offsetting the price advantage of these platforms, thereby supporting local businesses. However, these platforms remain a competitive threat, and the tax is only one measure in a broader fiscal reform effort targeting multinational profit shifting and tax base protection.
The study does not provide a specific estimate for the potential losses for investments, employment, and contributions to the public budget in the scenario of doubled purchases from non-EU platforms. It does predict, however, that in a scenario where the volumes or value of ordered packages double, the annual commercial value of direct imports through platforms such as Temu, AliExpress, Shein, or Trendyol could reach €7.8 billion (RON 39.78 billion), equivalent to about 28.8% of the local retail market, compared to the estimated 14.4% for the end of 2025.
Cristi Movila, president of ARMO, stated that the impact analysis highlights the size of the imbalance between local retailers and non-EU platforms. ARMO implies that the national budget is losing money due to parcels with a value under €150 entering the country from non-EU platforms without duties. If Romanians significantly increase their purchases, the share of the local retail market captured by non-EU platforms could potentially double from the estimated 14.4% for the end of 2025.
In summary, Romania is implementing fiscal measures to recover significant tax revenues lost to non-EU e-commerce platforms, with a key mechanism being a parcel levy effective by 2027 to mitigate competitive disadvantages for local retailers and support the public budget. The impacts on local retailers and the public budget are substantial, and the tax is only one measure in a broader effort to address the challenges posed by the growth of non-EU e-commerce platforms.
[1] Source: ARMO and Iancu Guda's impact analysis on non-EU e-commerce platforms in Romania.
The new levy on parcels entering Romania from non-EU e-commerce platforms, such as Temu and Shein, is expected to generate significant additional revenue for the public budget, directly addressing the tax losses caused by these platforms in the industry and finance sector. This levy could potentially level the playing field for local retailers, helping them compete with cheaper goods offered by the non-EU platforms.
