ASOS says German unpaid customs dispute is 'immaterial'

ASOS is facing a legal dispute with German tax authorities over unpaid customs duties - another challenge for the embattled online fashion retailer as it continues to execute its turnaround strategy.

The dispute relates to customs declarations made on ASOS shipments crossing the German border over several years, according to The Financial Times. German authorities notified ASOS of an alleged shortfall earlier this year, with an initial assessment reportedly running into the tens of millions of euros.

However, ASOS has contested the claim and maintains that the actual amount owed is significantly lower. In a statement to TheIndustry.fashion, an ASOS spokesperson said:

"ASOS Germany has been engaged in ongoing discussions and legal processes with the German customs authority following assessments relating to import duty corrections for prior financial periods.

"As indicated in our interim results on 24 April 2025, we are contesting the assessments and consider the maximum exposure to be immaterial. We have completed an extensive review of more than 95% of the tens of thousands of customs declarations in question. Based on this analysis, which is compliant with World Trade Organisation customs valuation methods and fully supported by external legal counsel, we are confident that the actual additional liability is circa €0.5m."

The retailer added that it "continues to engage with the authorities and follow the relevant legal processes" and remains "confident of a successful conclusion of the matter".

ASOS, which operates a distribution centre near Berlin and serves 20 million active customers worldwide, has endured several years of turbulence. Inflationary pressures, increased competition from fast-fashion rivals like Shein and excess stock challenges have weighed on performance.

However, under Chief Executive José Antonio Ramos Calamonte, ASOS has been working to restore profitability.

In September, ASOS reported "strategic progress" in FY25, despite lower-than-expected sales. The retailer’s gross profit margin rose by 350 basis points year-on-year, and adjusted earnings before interest, tax and other costs are expected to have increased by more than 60%.

Over the year, ASOS cleared excess stock, reduced its warehouse footprint and cut net debt by more than 60% since FY22, from £1.1 billion to £400 million.