Why each line applies
Every parcel entering the EU from outside it goes through the same three checks, though the outcome depends on value and category. First, customs value — usually the item price plus shipping cost — is calculated. Second, duty is assessed on that value, and third, VAT is charged on the value plus duty combined, not on the item price alone. A carrier handling fee, unrelated to the government charges themselves, is usually added on top for the paperwork.
The duty rule changed materially on 1 July 2026. Before that date, parcels worth €150 or less paid no customs duty at all — only VAT. Since 1 July 2026, that exemption is gone: parcels at or under €150 now carry a flat €3 duty per item as a temporary bridge measure, due to last until 1 July 2028, after which ordinary category-based duty rates will apply to every parcel regardless of value. Parcels over €150 have always paid, and continue to pay, ordinary ad-valorem duty based on the product's TARIC category — this tool applies the representative rate for your chosen category to those orders.
VAT has applied to every commercial import since 1 July 2021, with no minimum value exemption — the old €22 VAT-free allowance doesn't exist anymore. The rate depends on your destination country, not the origin: the calculator uses your selected EU country's standard VAT rate, applied to the customs value plus duty.
If the seller uses IOSS (Import One-Stop Shop) for an order of €150 or less, they collect VAT from you at checkout and remit it directly — you shouldn't be charged VAT again at the border, though the flat €3 duty (since July 2026) can still apply separately unless the seller has also prepaid it. If they don't use IOSS, expect the carrier to collect VAT, any duty, and their own handling fee from you before or at delivery.
Worked example
A €120 pair of shoes shipped from the US with €15 shipping, no IOSS, delivered to Germany, via a national postal service:
- Customs value: €120 + €15 = €135
- Duty: parcel is under €150, so the flat €3 transitional duty applies (not the clothing category rate, which only applies above €150)
- VAT base: €135 + €3 = €138
- VAT at Germany's 19%: €138 × 19% ≈ €26.22
- Carrier handling fee (postal, representative): ≈ €6
- Total landed cost: €120 + €15 + €3 + €26.22 + €6 ≈ €170.22
Typical duty rates by category
| Category | Typical rate (orders over €150) | Note |
|---|
These are representative rates, not the exact duty for any specific product — always check the official TARIC consultation tool for your item's precise code.
Frequently asked questions
What was the €150 rule and does it still apply?
Until 30 June 2026, parcels valued at €150 or below were exempt from customs duty (VAT still applied). That exemption ended on 1 July 2026 — such parcels now carry a flat €3 duty per item, a transitional measure expected to run until 1 July 2028, after which ordinary category-based duty applies to all consignments regardless of value.
Why does VAT apply even on cheap items?
Since 1 July 2021, import VAT applies to every commercial parcel entering the EU, with no minimum-value exemption — closing the old loophole where sellers undervalued parcels to dodge the previous €22 VAT-free threshold.
What is IOSS?
The Import One-Stop Shop lets a non-EU seller charge EU VAT at checkout for orders of €150 or less and remit it directly, so you shouldn't be charged VAT again at the border. Without IOSS, the carrier collects VAT (and any duty) from you on delivery, typically with an added handling fee.
What happens if I refuse a package?
If you refuse to pay the duty, VAT, or handling fee demanded on delivery, the carrier typically holds the parcel briefly, then returns it to the sender or disposes of it per their policy. You won't be charged the fees, but you also won't get the goods, and the seller may still deduct return shipping from any refund.