Half a million packages blocked with CTT
According to an Espresso report, CTT has more than half a million packages on its premises that are not being delivered.
The postal company has already been forced to increase its storage capacity, using other warehouses to store these orders, the weekly said.
The combination of increased online sales due to the pandemic and new VAT rules appear to have worsened package delivery delays across Portugal for orders from third countries.
Official information is not precise as to the exact number of packages held in CTT warehouses. The published information alone confirms that 450,000 orders arrived from outside the EU between July 1 and September 21 – a number that Espresso considers to be a far cry from the actual number of orders awaiting shipment.
CTT attributes the delays to new VAT rules and the increase in online shopping during the pandemic. Additionally, CTT told The Portugal News that sellers of goods outside the EU are also taking responsibility, saying these private entities need to adapt their management to the new VAT rules. “CTT’s current customs process is based on prior information from the company selling the goods outside the European Union”, which means that proof of VAT payment must be provided by the seller to the destination postal operator – in this case CTT – by an electronic message respecting a specific protocol.
Since July 1, 2021, the day the new directive modifying the VAT regime entered into force, all goods imported from outside the EU are subject to VAT (IVA).