How this calculator works
Both the UK and the EU treat low-value parcels differently from larger ones, and the limit is based on the value of the goods, not including shipping: £135 for the UK and €150 for the EU.
UK, £135 or less: there is no customs duty. The seller or online marketplace charges 20% VAT at checkout and pays it to HMRC, so the buyer pays nothing on delivery. Above £135, customs duty from the UK Global Tariff and 20% import VAT on the value plus duty are collected at the border.
EU, €150 or less: import VAT applies at every value, at the rate of the buyer’s country. If the seller is registered for IOSS (the Import One-Stop Shop), VAT is charged at checkout. Without IOSS, VAT is collected at the border, usually from the buyer. Since July 1, 2026, these parcels also pay a flat €3 customs duty per item type, even with IOSS.
EU, above €150: normal customs duty from the EU tariff applies to the goods, shipping and insurance, and import VAT is charged on that total plus the duty.
“Item type” means a customs tariff line: a parcel with three T-shirts and a mug has two item types and pays €6 in flat duty. Carrier handling and clearance fees are extra and vary by carrier.
Worked example
An €80 order plus €12 shipping, two item types, to Germany (19% VAT)
- With IOSS: VAT at checkout is 19% of €92 = €17.48, and the €3 duty for two item types adds €6. Total: €115.48.
- Without IOSS: VAT is charged at the border on €92 + €6 duty, so 19% of €98 = €18.62. Total: €116.62, usually paid by the buyer before delivery.
- A £70 order with £8 shipping to the UK: 20% VAT of £15.60 at checkout and no duty. Total: £93.60.
Questions people ask
What changed for EU parcels in July 2026?
The EU ended its €150 customs duty exemption on July 1, 2026. Low-value parcels from outside the EU now pay a flat €3 customs duty per item type, as a transitional measure until June 30, 2028. Import VAT rules did not change.
Does IOSS cover the €3 duty?
No. IOSS only handles VAT. The €3 duty is a customs charge collected through the customs declaration, usually billed by the carrier to the seller.
Is the UK £135 duty relief ending?
Yes, but not yet. The UK government has confirmed it will remove the relief and introduce new arrangements by October 2028 at the latest. Until then, consignments of £135 or less pay no customs duty.
Why did my customer pay extra on delivery?
Usually because VAT or duty wasn’t collected at checkout, so the carrier collected it at the border along with a handling fee. Collecting VAT at checkout (UK under £135, or EU with IOSS) avoids this for low-value orders.
Sources
Last reviewed October 2, 2026