What you Need to Know
If your business is using IOSS, you don’t need to worry about paying other import fess to EU countries.
However, if you’re selling goods to customers outside the UK or EU and your parcel is valued over £135/€155 -or- you’ve chosen not to use IOSS, you have to pay VAT in a different way.
You have two choices:
Delivery Duty Paid (DDP)
DDP is where your business pays all customs, duties and fees before shipping goods into the destination country. This is a much better option for your EU customers, it avoids nasty surprise charges and offers them a great experience when buying from UK sellers.
As of July 1st 2021, DDP can be selected as a payment option on Parcel2Go during the order process on selected services.
Typically in this scenario, the seller bundles all the costs together and charges a total price at the point of sale. This mans that once the purchase is complete, all the buyer has to do is wait to receive their parcel!
Our Top Tips:
DDP is cheaper and quicker than sending by DDU
Delivery Duty Unpaid (DDU)
DDU is where your customers pays all customs, duties and fees after their goods have arrived in the destination country.
In this scenario, local customs contact your customer, who must pay any outstanding charges before their goods are released for final delivery.
Remember: Parcels will be held by customs until payments are made. Any payments not received may result in parcels being returned, delayed or in some cases destroyed.
Our Top Tips:
DDU creates extra steps and more hassle for your EU customers. To avoid this, consider using DDP or IOSS, where applicable.
How Much Duty Will I Pay?
Every country and courier has different duty and customs clearance charges.
To make this easy for you, a Duty Calculator is available on Parcel2Go during the order process, which will detail all the customs and duty charges that apply to your parcel.
GPSR: Updated General Product Safety Regulations
As of 13th December 2024, new regulations have been introduced to enhance product safety for consumers and provide clearer guidelines for businesses shipping to the EU and NI. The question on most peoples mind is Does GPSR Apply to Me?
The key change for UK-based businesses and online sellers is the requirement to appoint a ‘responsible person’ based in the EU or NI. This individual is responsible for overseeing compliance and product safety requirements. Additionally, all packaging must adhere to GPSR labelling regulations.
