Customs, Import VAT and Handling Fees Explained

Why a parcel from abroad can cost more than the price at checkout

An order placed with a shop based outside the buyer's own customs territory can attract extra charges after checkout: customs duty, import VAT, and a handling fee charged by the courier or postal service for processing the paperwork. None of these are set by the shop selling the item, and none of them are reflected in a voucher code or coupon code applied at checkout, since a code reduces the shop's price, not what happens once the parcel crosses a border. The rules differ significantly between the EU, the UK and the US, and they have also been changing, so it is worth checking the current position for the relevant region before assuming an order will arrive without extra cost.

European Union

Import VAT has applied to all commercial goods brought into the EU regardless of value since July 2021, so there has not been a VAT-free threshold for online purchases from outside the EU for some time. On top of VAT, a separate customs duty exemption for low-value goods, previously applying to parcels worth €150 or less, ended in the EU from 1 July 2026. In its place, a temporary flat customs duty applies to low-value business-to-consumer imports, intended to run until 1 July 2028, after which the EU plans to move to standard tariff rates instead. Because this is a transitional arrangement, the exact figure is worth checking directly with the shop or courier at the time of ordering rather than relying on an older figure, since flat-rate schemes of this kind are set centrally and can be revised.

United Kingdom

The UK has, since leaving the EU, applied its own threshold: goods with a value at or below £135 have generally been exempt from customs duty, while import VAT can still apply below that threshold, and gifts have their own separate, lower allowance. Many larger overseas marketplaces are required to collect UK VAT directly at checkout under HMRC's rules for overseas sellers, so the VAT is sometimes already included in the price shown rather than charged on arrival. The UK government confirmed in mid-2026 that the £135 customs duty relief itself is due to be phased out by October 2028, which will bring low-value parcels into the ordinary duty system over time. Because the change is being phased in rather than immediate, the current position is worth confirming on HMRC's own guidance for goods sent from abroad before assuming last year's rules still apply.

United States

The US previously allowed shipments valued at $800 or less to enter without formal customs duty under the de minimis exemption. That exemption has been removed in stages: first for shipments from China and Hong Kong, then more broadly from August 2025 onward. The practical effect is that shipments from abroad, including relatively low-value ones, can now be subject to formal or informal customs entry and associated duties, with the exact rate depending on the product category and country of origin rather than a single flat figure. Because tariff rates on specific product categories have been adjusted repeatedly, a figure that applied a few months ago may not apply today, so checking the shop's own stated shipping terms, or a current customs estimate for the specific product and origin, is more reliable than assuming an old exemption still holds.

What a handling fee covers, separately from tax

Alongside any duty or VAT owed, couriers and postal operators typically charge their own handling or clearance fee for processing the paperwork and collecting the payment on the government's behalf. This fee is set by the carrier, not by the shop or by any tax authority, and it applies whether or not duty or VAT is actually owed on that particular parcel. It is worth checking a shop's own delivery information page, since some retailers now collect estimated duty and VAT at checkout precisely to avoid a courier charging a separate handling fee on delivery.

Practical steps before ordering from abroad

• Check whether the shop's checkout already includes an estimate for duty and VAT, since this avoids a surprise charge on delivery.
• Look at the shop's stated country of dispatch, not just its stated home market, since these are not always the same.
• Keep the order confirmation, since it is usually needed if a customs charge is disputed or a handling fee looks incorrect.
• Remember that a code lowers the shop's price only; it has no effect on duty, VAT, or courier handling fees calculated afterwards.

Where to check shops with clearer domestic delivery

Ordering from a retailer that ships from within the buyer's own customs territory avoids this question altogether. Current shops by category, including many with domestic delivery, can be browsed on the categories page, and delivery terms for a specific retailer can be checked on its own listing via the stores page.