How Import Taxes Work When Shipping Parcels from Thailand to Europe

If you’re shipping parcels from Thailand (or any country outside the EU) to Europe, it’s essential to understand how VAT and import duties are calculated. Many e-commerce sellers and individual shippers assume that small or inexpensive items are tax-free—but that is no longer true.

Key Regulation

The rules come from the EU VAT e-commerce package, which has been in effect since July 1, 2021.

Main principle:
Every parcel shipped from outside the EU must be charged VAT, regardless of its value. The previous low-value exemption (€22) has been removed.

This means that even small, cheap, or personal-use items are now subject to VAT.

What the Recipient Has to Pay

1. VAT (Value Added Tax)

• Applied to all items shipped from outside the EU.
• The rate depends on the destination country (approx. 17–27%).
• Calculated based on item value + shipping costs (in some countries).

2. Import Duty

• Applied when the item’s value exceeds €150.
• Parcels below €150 → only VAT applies.
• Parcels above €150 → VAT + Import Duty apply.

Who Pays the Taxes?

• Typically, the recipient is responsible for paying VAT and import duties.
• Couriers such as DHL or UPS often pay the tax upfront and then collect it from the recipient.

Important: The declared value on the Commercial Invoice determines the taxes.

• Undervaluing the item can trigger:
  • Requests for proof of value
  • Reassessment by customs authorities
  • Shipment holds or delays

Common Misunderstandings

• Labeling a parcel as “gift” does not avoid VAT.
• Personal-use items still incur VAT.
• A small box does not mean it’s tax-free.

Summary

• Every parcel shipped to Europe must pay VAT.
• Parcels over €150 may also incur import duty.
• The recipient is responsible for payment.
• Taxes are calculated based on the declared value in the Commercial Invoice.
• Tip: Notify your recipient in advance to reduce the risk of shipment refusal or delays.

Sources / References

1. European Commission – VAT rules for low-value consignments
   https://taxation-customs.ec.europa.eu/
2. World Customs Organization – EU VAT reform
   https://www.wcoomd.org/