The EU customs union

The European Union customs union applies a single common external tariff to goods from outside the bloc. Once Alibaba goods clear at the first EU port, they move freely to any member state without further customs duty.

For express courier parcels: If your shipment’s goods value is under €150, the customs duty is waived. However, a small fixed customs handling fee (usually €2.50 – €5.00) is still charged by the carrier for processing the clearance. (Note: The old €22 VAT exemption was abolished in 2021, so import VAT is still applied even on low-value parcels).

VAT and origin

Import VAT is set by the destination member state’s rate; it is due at import unless your business is registered for deferred accounting there. Preferential duty rates depend on proof of origin, not where the goods shipped from. The UK’s separate regime is covered in UK VAT after Brexit, and the maths behind duty is in import duty explained.