Extortionate VAT and customs charge in the EU??

Discussion in 'General Business Forum' started by Joanna May Tuchband, Jan 16, 2021.

  1. Joanna May Tuchband

    Joanna May Tuchband UKBF Newcomer Free Member

    3 0
    Hi guys,

    I run a small jewellery business and and have a lot of customers in the EU
    I have shipped out a few packages with jewellery worth around £20, and my customers are getting hit with customs VAT fees of €34 - I thought they only had to pay 21% VAT on the price of the contents and the price of the packaging? Am I missing something? The charge seems extortionate and is going to lose me lots of business!:(
    Posted: Jan 16, 2021 By: Joanna May Tuchband Member since: Jan 16, 2021
  2. Mr D

    Mr D UKBF Legend Free Member

    27,415 3,367
    What customs codes are you using for your items and which country you sending to?
    Posted: Jan 16, 2021 By: Mr D Member since: Feb 12, 2017
  3. Newchodge

    Newchodge UKBF Big Shot Free Member

    15,118 4,100
    Welcome to the sunny uplands where there are no barriers to trade with the EU
    Posted: Jan 16, 2021 By: Newchodge Member since: Nov 8, 2012
  4. DefinitelyMaybeUK

    DefinitelyMaybeUK UKBF Contributor Free Member

    47 7
    As Mr D implies, the HS code and country can make a big difference (VAT rates are different across the EU), but if your orders are always below €150 then there should not be any duties to pay. If your order is below €22 in most EU countries (some are €10), then no VAT either. Unfortunately £20 is around €22.50 so likely got caught.

    The worst part seems to be the wide range of handling/customs fees across the EU countries. We currently have a held Belgium parcel (via Royal Mail) where the fee is stated as €24 and the clearance time says 20 to 24 days (!) Most other EU locations are thankfully less though. I must admit €34 does seem excessive on a £20 order, but please post some actual figures/country as it may save someone else some grief.
    Posted: Jan 16, 2021 By: DefinitelyMaybeUK Member since: Jan 12, 2021
  5. DefinitelyMaybeUK

    DefinitelyMaybeUK UKBF Contributor Free Member

    47 7
    Just for reference, from recent RM correspondence, the current customs handling fees are:
    Austria €10
    Belgium €24
    Bulgaria €2.30
    Croatia €5
    Republic of Cyprus €3.50
    Denmark €22
    Estonia €1.50
    France €12
    Germany €6.00
    Hungary €31.20
    Ireland €10
    Italy €7.50
    Latvia €20
    Lithuania €8.69
    Luxembourg €15
    Malta €7
    Netherlands €13
    Portugal €12
    Romania €4.12
    Spain €5.88
    Sweden €7

    The current VAT threshold is €22 as mentioned, apart from France €1 and Sweden €0. Duty threshold is €150 in all the EU. Note, this is due to change from 1st July 2021 (but could be delayed) with the introduction of the "IOSS" scheme (see elsewhere) where VAT is applicable on all imports, although the duty threshold remains at €150.
    Posted: Jan 16, 2021 By: DefinitelyMaybeUK Member since: Jan 12, 2021
  6. scstock

    scstock UKBF Regular Free Member

    137 26
    That's really useful information - thanks for sharing.
    Posted: Jan 17, 2021 By: scstock Member since: Mar 27, 2009