Since 1 July 2021, all goods sent from the UK to the EU are subject to EU VAT — regardless of value. Previously, low-value consignments could be sent VAT-free. That exemption has now been removed.
Exception: Gifts
If you are a private individual (not a business) sending a genuine gift to another private individual in the EU, shipments valued up to £39 / €45 may be exempt from VAT.
To qualify:
The parcel must be sent between private individuals
It must be occasional
It must be declared as a gift
It must not be for commercial purposes
What Does This Mean for You?
To comply with the new EU VAT rules, new systems have been introduced to make paying VAT and customs charges easier and more transparent.
When sending parcels to the EU with MyParcels, you now have three main options:
Import One Stop Shop (IOSS)
The Import One Stop Shop (IOSS) scheme was introduced by the EU to simplify VAT collection on goods valued up to €150.
It allows UK businesses and online marketplace sellers to:
Charge EU VAT at the point of sale
Declare and pay VAT via a single EU registration
Speed up customs clearance
Improve the delivery experience for customers
Best for:
E-commerce businesses
Marketplace sellers
Regular EU exporters
Using IOSS helps avoid unexpected charges for your customers upon delivery.
Delivery Duties Paid (DDP)
If you are not using IOSS, Delivery Duties Paid (DDP) allows you to pay VAT, customs duties, and clearance fees at the time of booking your shipment.
This means:
The sender covers all import charges
The recipient will not be contacted for payment
Parcels clear customs faster
Customers receive a smoother, hassle-free delivery experience
Best for:
Businesses wanting a premium customer experience
Senders who want full control over landed costs
DDP is often preferred for online retailers aiming to avoid abandoned deliveries due to unexpected fees.
Delivery Duties Unpaid (DDU)
If you choose not to use IOSS or DDP, your shipment will be sent as Delivery Duties Unpaid (DDU).
Under DDU:
The recipient is responsible for paying VAT, duties, and customs fees
The parcel will not be delivered until charges are paid
Delays may occur if payment is not made promptly
Best for:
Low-value personal shipments
Senders who prefer the recipient to manage import charges
Please note: This option can result in slower delivery times and potential refusal of goods.
Which Option Should You Choose?
Option | Who Pays VAT & Duties? | Customer Experience | Recommended For |
IOSS | Collected at checkout | Fast & seamless | Online sellers |
DDP | Sender pays at booking | Smooth & predictable | Businesses |
DDU | Recipient pays on arrival | May cause delays | Personal senders |
How MyParcels Helps
At MyParcels, we guide both individuals and businesses through EU shipping requirements to ensure:
Accurate customs declarations
Correct VAT handling
Faster clearance
Reduced risk of delays
Transparent shipping costs
Whether you’re a personal sender or an e-commerce business, we make sending to the EU straightforward and compliant.
Need More Information?
If you are:
Sending as a consumer (personal shipment) – check our personal sending guide.
Sending as a business – see our business shipping guide for full VAT and customs compliance details.
Important Notice
This content is for general informational purposes only and does not constitute legal or tax advice. Regulations may change, and businesses should seek professional guidance where necessary.