A new EU “handling fee” on parcels entering the EU from outside mainly matters to UK sellers shipping into the bloc. For UK shoppers, the rules that actually apply are HMRC’s import VAT threshold and the Royal Mail or Parcelforce handling charge.
Key points
- A new EU “Union handling fee” of €2 per item took effect on 1 November 2026 for parcels entering the EU from non-EU countries. It mainly affects UK-based sellers shipping to EU customers, not UK shoppers themselves.
- For goods sent to the UK from abroad, import VAT applies to the whole parcel unless it’s a gift worth £39 or less. Up to £135, the seller has usually already included VAT in the price; above £135, the buyer pays import VAT before or on delivery.
- Customs Duty is due on goods over £135 (and on excise goods of any value), based on the price plus postage, packaging and insurance.
- Royal Mail charges an £8 handling fee to clear dutiable parcels; Parcelforce charges £12 (£25 for goods worth over £900). These are separate from the VAT and duty itself, which is calculated by Border Force on behalf of HMRC.
UK shoppers ordering from outside the UK can face import VAT, Customs Duty and a handling fee on top of the price – but the EU’s new €2 handling fee that started on 1 November 2026 isn’t one of them. That charge applies to parcels entering the EU, not the UK. The costs that actually land on a UK doorstep come from HMRC’s own import rules and the carrier that clears the parcel through customs.
What the EU’s new €2 fee actually covers
The European Commission introduced a Union handling fee of €2 per item from 1 November 2026, charged to the customs declarant handling low-value, non-EU parcels entering the EU. A separate, temporary €3 customs charge for items worth up to €150 has applied since 1 July 2026 under Regulation (EU) 2026/382, running until 1 July 2028. Neither charge applies to parcels addressed to the UK – they only bite when a parcel is formally declared for entry into the EU customs territory. The main group affected on this side of the Channel are UK-based retailers and marketplace sellers who ship into the EU, who may see these costs passed on by their logistics providers.
What UK shoppers actually pay: HMRC’s import VAT rules
For goods sent from outside the UK to someone in Great Britain, HM Revenue & Customs (HMRC) applies import VAT to the full value of the parcel – goods, postage, packaging and insurance combined – except for gifts worth £39 or less, which are VAT-exempt. Two value bands matter most for everyday online shopping:
- Up to £135, bought by the buyer: the seller has usually already charged UK VAT at the point of sale, so no further VAT is normally collected on delivery – unless it’s a gift over £39 or an excise good.
- Over £135: import VAT is charged before delivery or on collection, and Customs Duty also applies, calculated on the price plus shipping costs; the rate depends on the type of goods.
Low Value Consignment Relief, the old exemption that let parcels worth under £15 enter VAT-free, was scrapped UK-wide years ago; today VAT applies from the first pound unless the £39 gift exemption applies.
The handling fee that actually lands on your doorstep
Separately from VAT and duty, the carrier that clears a parcel through UK customs charges its own handling fee for doing the paperwork. According to the Consumer Council, these fees vary by operator: Royal Mail charges £8 per dutiable item, while Parcelforce charges £12 (rising to £25 for goods worth over £900). The actual VAT and duty amounts are set by Border Force on HMRC’s behalf, not by the carrier – the carrier only adds its own fee for handling the customs declaration and advancing the payment.
Worked example: a £180 parcel from outside the UK via Royal Mail
- Customs Duty: depends on the goods category, applied to price + postage (say a standard-rated item)
- Import VAT: 20% on (goods + postage + duty)
- Royal Mail handling fee: £8 flat
Illustrative Net Trends calculation based on HMRC’s published mechanism, not an official estimate for any specific item – the duty rate itself depends on the product’s commodity code.
Checklist for UK shoppers
- Check at checkout whether UK VAT is already included – most major overseas retailers now charge it upfront for orders up to £135.
- For orders over £135, expect a VAT and possibly a duty bill before or on delivery, plus the carrier’s handling fee.
- If you’re charged VAT on a returned or overvalued parcel, forms BOR 286 (Royal Mail/Parcelforce) or C285 (other carriers) can be used to claim a refund.
- Gifts from an individual abroad worth £39 or less remain VAT-free.
Frequently asked questions
Do I have to pay the EU’s new €2 handling fee as a UK shopper?
No. That fee applies to parcels entering the EU from non-EU countries. It doesn’t apply to goods shipped to addresses in the UK, which follow HMRC’s separate import VAT and Customs Duty rules instead.
Is there still a VAT-free threshold for parcels into the UK?
Not for purchased goods in general – import VAT applies from the first pound of value, except for gifts from an individual worth £39 or less. Up to £135, VAT is usually already included in the seller’s price rather than charged again on delivery.
Why does Royal Mail or Parcelforce charge an extra fee on top of VAT?
That £8 (Royal Mail) or £12–£25 (Parcelforce) fee covers the carrier’s own cost of handling the customs declaration and paying the VAT and duty to Border Force in advance on your behalf – it’s separate from the tax itself, which HMRC sets.
Sources and status
- GOV.UK / HMRC: Goods sent from abroad – tax and duty
- Consumer Council (Northern Ireland): Tax and customs charges on post
- European Commission: EU Customs Reform – Union handling fee (background on the EU-side rule)
- EUR-Lex: Regulation (EU) 2026/382 on the temporary €3 customs charge
Research and data as of: 3 November 2026.
Transparency note: AI-assisted tools were used in researching, structuring and writing this article. The sources used are listed in the article. Publication takes place only after manual editorial approval. Country edition based on an article from Net Trends, researched for the United Kingdom. The cover image is an AI-generated illustrative image and does not show a real customs facility or an actual shipment.
Share this article
