How to handle customs and duties for EU orders
EU orders from the UK go through customs. For parcels up to €150, EU VAT can be collected at checkout with IOSS, and customs duty usually doesn't apply. Above €150, duties may apply unless goods qualify as UK origin under the UK-EU trade agreement. Charging duties at checkout avoids refused deliveries.
By Abdullah Ashraf, Shopify expert · Last updated: October 2026
Quick summary
- IOSS covers VAT on parcels up to €150.
- UK-origin goods can qualify for zero tariffs.
- Delivered duty paid avoids surprise fees.
Up to €150
Customs duty is generally not charged, but EU VAT is. With IOSS you collect it at checkout; without it, the customer pays on delivery plus a handling fee.
Over €150
Import VAT and possibly customs duty apply. Goods that meet the UK-EU trade agreement's rules of origin can be duty-free.
Who pays
- Delivered duty paid (DDP): you collect duties at checkout and the customer pays nothing on delivery
- Delivered at place (DAP): the customer pays on delivery
Paperwork
Include accurate descriptions, values, HS codes and country of origin on customs declarations.
Frequently asked questions
Is IOSS worth it?
If you send many low-value parcels to the EU, usually yes.
Do rules of origin apply to me?
Only if goods are made or substantially processed in the UK.
Official sources
Checked September 2026. Rules change, so always check the latest official guidance.
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