EU Import Duty: Rates, VAT, and How to Pay [2026]

Importing goods into the European Union means navigating a unified customs framework that applies across all 27 member states. Whether you're shipping electronics from China to Germany or textiles from Turkey to France, the same EU import duty rules govern what your customers pay at the border. Understanding these rules helps you set accurate prices and avoid surprise charges that drive cart abandonment.

EU import duty is the customs duty charged when goods enter the EU from outside the bloc. Since July 2026, parcels under €150 from non-EU countries pay a flat €3 duty per item type — a temporary measure until the EU's new customs data hub launches around 2028. VAT applies on top.

How EU Import Duty Works

The EU uses the TARIC (Integrated Tariff of the European Union) system — a standardized database that classifies every product entering the single market. Every item is assigned an HS code (Harmonized System), typically at the 8- or 10-digit level, which determines the applicable duty rate.

Unlike countries where customs rules vary by region, the EU applies identical tariff rates across all member states. A shipment entering through Rotterdam pays the same duty rate as one arriving in Warsaw. This uniformity simplifies cross-border commerce but means you need to classify products correctly — one wrong digit in the HS code can mean the difference between a 0% and a 12% duty.

The TARIC database is updated regularly to reflect trade agreements, anti-dumping duties, and preferential rates. Products originating from countries with EU free trade agreements (such as South Korea, Japan, or Canada) may qualify for reduced or zero duty rates, provided you can prove the goods meet rules of origin requirements.

EU Duty Rates by Product Category

EU duty rates vary significantly depending on the product type. The tariff schedule distinguishes between raw materials (often duty-free), semi-finished goods, and finished consumer products. Here are common categories that ecommerce merchants encounter:

Textiles & apparel — 8% to 12%. Cotton t-shirts typically carry a 12% duty; synthetic fabrics may be lower.
Electronics — 0% to 14%. Many consumer electronics fall under the Information Technology Agreement (ITA) with 0% duty, while appliances and accessories can reach 14%.
Footwear — 8% to 17%. Leather shoes face higher rates than synthetic or sports footwear.
Cosmetics & skincare — 0% to 6%. Most skincare products carry low duties; perfumes and essential oils can be higher.
Home goods & furniture — 0% to 9%. Wooden furniture typically faces 0% duty; upholstered pieces may reach 5-9%.
Toys & games — 0% to 4.7%. Most toys have relatively low tariffs under WTO agreements.

These rates are the Most Favoured Nation (MFN) baseline. Preferential rates under trade agreements can reduce them further — for example, goods from Vietnam may benefit from reduced duties under the EU-Vietnam Free Trade Agreement.

EU VAT on Imports

Beyond customs duty, every imported good is subject to Value Added Tax (VAT) at the destination country's standard rate. VAT rates across the EU vary:

Germany — 19%
France — 20%
Italy — 22%
Spain — 21%
Netherlands — 21%
Poland — 23%
Hungary — 27% (highest in the EU)
Sweden — 25%

VAT is calculated on the total landed cost: product value + shipping costs + insurance + import duty. This means VAT compounds on top of duty, making the effective tax burden higher than the headline duty rate alone. For example, a product with a 12% duty and 19% VAT in Germany faces an effective combined rate of approximately 33%.

Under the IOSS (Import One-Stop Shop) scheme, sellers can collect VAT at checkout for goods valued at €150 or less, so buyers don't face a VAT charge on delivery (though the flat €3 duty per item type may still apply to low-value parcels since July 2026). For goods above €150, the buyer typically pays VAT upon delivery.

EU De Minimis Thresholds

The EU's long-standing exemption from customs duty for goods valued at €150 or less ended on July 1, 2026, replaced by a temporary flat €3 customs duty per item type on parcels under €150 entering the EU from outside the bloc. The flat fee is an interim measure that will apply until the EU Customs Data Hub is operational (expected around 2028), after which normal tariff rates apply to all consignments regardless of value. Under the new rules, shippers must also provide item-level data for every package rather than a single consolidated declaration.

Customs duty — Since July 1, 2026, parcels under €150 pay a flat €3 duty per item type instead of being exempt. Genuine gifts between private individuals under €45 remain exempt from duty.
VAT — There has been no VAT exemption for commercial imports since July 2021, when the EU removed the previous €22 exemption. All imported goods, regardless of value, are subject to VAT at the destination country's rate.

Prior to July 2021, packages valued under €22 were exempt from both duty and VAT, which created a significant competitive advantage for direct-to-consumer shipments from outside the EU. The rule change leveled the playing field for EU-based sellers but added complexity for international merchants who now must register for IOSS or ensure their customers are prepared to pay VAT on delivery.

Some product categories are never covered by low-value relief — alcohol, tobacco, and perfume are always subject to excise duties regardless of value.

How to Calculate EU Import Duty

Let's walk through a concrete example. Say you're shipping a cotton t-shirt valued at $80 (approximately €73) to a customer in Germany, with $10 shipping:

Determine the HS code. A cotton t-shirt is typically classified under HS 6109.10.00 (cotton, knitted).
Look up the duty rate. Cotton t-shirts enter the EU at a 12% MFN duty rate.
Calculate duty. The customs value (CIF) is €73 + €9 shipping = €82. Duty = €82 × 12% = €9.84.
Calculate VAT. VAT base = €82 (product + shipping) + €9.84 (duty) = €91.84. German VAT at 19% = €91.84 × 19% = €17.45.
Total import charges. Duty (€9.84) + VAT (€17.45) = €27.29 in addition to the product and shipping costs.

That €27.29 represents roughly 33% of the original product value — a significant cost that customers often don't expect. Transparent pricing at checkout reduces returns, chargebacks, and support tickets.

The calculation changes for products under €150. If the same t-shirt cost $30 (€27) instead, it is no longer exempt from duty — since July 2026, parcels under €150 pay a flat €3 duty per item type. The customer's import charge is now €3 in duty plus VAT at the destination country's rate (for example 19% in Germany), instead of the 33% effective rate on higher-value goods.

Frequently Asked Questions

How much is EU import duty?

For parcels under €150 from outside the EU, it's a flat €3 duty per item type — not a percentage — until the EU Customs Data Hub launches around 2028. Above €150, normal tariff rates apply based on the product's HS code — for example 12% for cotton t-shirts and up to 17% for leather footwear — with VAT on top in every case.

Do I pay EU import duty on small parcels?

Yes. Since 1 July 2026, parcels under €150 pay a flat €3 duty per item type instead of entering duty-free as they did under the old €150 exemption. The flat fee applies per product type in the parcel, not per package, and genuine gifts between private individuals under €45 remain exempt from duty.

Is there a de minimis threshold in the EU?

Not for duty on low-value commercial parcels. The €150 duty exemption was replaced on 1 July 2026 by the flat €3 duty per item type, which applies until around 2028. VAT has had no threshold at all since July 2021, when the old €22 exemption was removed — it applies from the first euro.

How is EU import duty calculated?

For parcels above €150, multiply the customs value — the goods plus delivery and insurance to the EU border — by the duty rate for the product's HS code. A €200 goods order with €20 shipping (customs value €220) at the 12% rate for cotton t-shirts owes €26.40 in duty, and VAT is then charged on the goods, shipping, and duty combined — €46.82 at Germany's 19% rate. Parcels under €150 skip the percentage and pay the flat €3 per item type.

Who pays EU import duty — buyer or seller?

The importer of record pays — normally the buyer, either at delivery or through an IOSS-registered seller collecting VAT at checkout. Sellers can instead ship DDP (Delivered Duty Paid) and settle all duties and taxes upfront, which shows the full landed cost at checkout. Either way, the duty is owed to the destination country's customs authority.

Related guides: Irish Customs Charges · UK Import Duty

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