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Non-EU sellers sending packages to the EU - import charges
Just thought I'd contribute the following for non-EU sellers to refer customers to when they're asking about EU import charges.
When sending orders to the EU from outside the EU there are two considerations for your customers to consider.
(1) Import/Customs Duty
(2) Import VAT
The threshold for (1) is set at €150 across the EU, or an approximate equivalent in the local currency if the Euro isn't used. For example in the UK it's currently set at £135.
The threshold for (2) is set at anywhere between €10 and €22 depending on the country (UK = £15). Import VAT is only paid if VAT would be due on the goods had they been sold locally. In the case of Lego this means it would always be due.
What this means is that should the value of an order exceed (2), then in theory there will be something for the recipient to pay before the package is delivered. Low amounts of Import Duty (below €10 or local equivalent) will not be collected, but some countries may still attempt to collect low amounts of VAT. Where an amount of Duty and/or VAT is payable, there'll almost always be an administration charge as well (the UK post office charges a set figure, some other carriers such as DHL charge a % of the amount due to the authorities).
(1) is calculated on the value of the transaction, including packaging, postage and insurance, and also any local (US/state) taxes paid. (2) is calculated on the same value as (1) plus any Duty charged.
What this means in practice is that if the value of your order is less than the €10 to €22 threshold set by your country for Import VAT then you won't have anything to pay. Above this and you'll have Import VAT and an admin charge to pay. Above €150 and you'll also have Import Duty to pay (though as stated above they will not collect small amounts).
For the purposes of these Import Duty/VAT guidelines, the EU includes:
Austria
Belgium
Bulgaria
Croatia
Cyprus
Czech Republic
Denmark
Estonia
Finland
France
Germany
Greece
Hungary
Ireland
Italy
Latvia
Lithuania
Luxembourg
Malta
Netherlands
Poland
Portugal
Romania
Slovakia
Slovenia
Spain (excluding Canary Islands)
Sweden
United Kingdom (excluding Channel Islands and Gibraltar)
UK examples:
Customs (order) value = £20
Import Duty = £0
Import VAT = £20 * 20% = £4
Post Office Administration Charge = £8
Total to pay = £12
Customs value = £180
Import Duty = £180 * 4.7% = £8.46 = £0 (too low to collect)
Import VAT = £180 * 20% = £36
DHL Administration Charge = £1.25
Total to pay = £37.25
Customs value = £340
Import Duty = £340 * 4.7% = £15.98
Import VAT = £355.98 * 20% = £71.20
DHL Administration Charge = £1.74
Total to pay = £88.92
When sending orders to the EU from outside the EU there are two considerations for your customers to consider.
(1) Import/Customs Duty
(2) Import VAT
The threshold for (1) is set at €150 across the EU, or an approximate equivalent in the local currency if the Euro isn't used. For example in the UK it's currently set at £135.
The threshold for (2) is set at anywhere between €10 and €22 depending on the country (UK = £15). Import VAT is only paid if VAT would be due on the goods had they been sold locally. In the case of Lego this means it would always be due.
What this means is that should the value of an order exceed (2), then in theory there will be something for the recipient to pay before the package is delivered. Low amounts of Import Duty (below €10 or local equivalent) will not be collected, but some countries may still attempt to collect low amounts of VAT. Where an amount of Duty and/or VAT is payable, there'll almost always be an administration charge as well (the UK post office charges a set figure, some other carriers such as DHL charge a % of the amount due to the authorities).
(1) is calculated on the value of the transaction, including packaging, postage and insurance, and also any local (US/state) taxes paid. (2) is calculated on the same value as (1) plus any Duty charged.
What this means in practice is that if the value of your order is less than the €10 to €22 threshold set by your country for Import VAT then you won't have anything to pay. Above this and you'll have Import VAT and an admin charge to pay. Above €150 and you'll also have Import Duty to pay (though as stated above they will not collect small amounts).
For the purposes of these Import Duty/VAT guidelines, the EU includes:
Austria
Belgium
Bulgaria
Croatia
Cyprus
Czech Republic
Denmark
Estonia
Finland
France
Germany
Greece
Hungary
Ireland
Italy
Latvia
Lithuania
Luxembourg
Malta
Netherlands
Poland
Portugal
Romania
Slovakia
Slovenia
Spain (excluding Canary Islands)
Sweden
United Kingdom (excluding Channel Islands and Gibraltar)
UK examples:
Customs (order) value = £20
Import Duty = £0
Import VAT = £20 * 20% = £4
Post Office Administration Charge = £8
Total to pay = £12
Customs value = £180
Import Duty = £180 * 4.7% = £8.46 = £0 (too low to collect)
Import VAT = £180 * 20% = £36
DHL Administration Charge = £1.25
Total to pay = £37.25
Customs value = £340
Import Duty = £340 * 4.7% = £15.98
Import VAT = £355.98 * 20% = £71.20
DHL Administration Charge = £1.74
Total to pay = £88.92
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