Online shoppers faced with additional €2 per item parcel tax
Revenue has advised consumers who shop online of a further change to customs arrangements for goods bought from outside the EU (including Great Britain).
Revenue has today, advised consumers who shop online of a further change to customs arrangements for goods bought from outside the EU (including Great Britain).
From November 1st, the EU will introduce a new union handling fee of €2 per distinct item, which businesses that file customs declarations for e-commerce packages will pay. It relates to goods purchased online from non-EU countries and shipped to consumers in Ireland and other EU Member States.
This fee is separate from, and in addition to, the €3 customs duty per item that has applied since July 1st, 2026.
The union handling dee is being introduced on November 1st.
The fee is €2 per distinct item in a package.
The fee is NOT refundable, even where goods are later found to be faulty.
The charge is intended to cover the increased costs being incurred by customs authorities as a result of the huge growth of e-commerce over the last number of years.
The fee will apply to all e-commerce goods, regardless of the value, where a seller ships goods from outside the EU to a consumer in Ireland.
The fee will be paid by the e-commerce seller or by the business delivering the goods. However, they may pass on the charge to the end consumer.
The intention is that the charge will be part of a wider package of changes under the EU Customs Reform, which places more responsibility on eCommerce platforms, sellers and delivery businesses.
For example, a package valued at €10 containing a pen, notebook and key ring purchased online and sent from outside the EU contains three different items. Since July 1st the €3 customs duty charge applies to each item, resulting in customs duty of €9, plus any applicable VAT. From November 1st an additional union handling fee of €2 per item will also apply, adding €6. The total charges will therefore be €15, plus any applicable VAT.
If the package instead contained two identical pens, these are considered one item, so this package is liable to a €3 customs duty charge plus VAT and from November 1st an additional €2 union handling fee, so €5 plus any applicable VAT in total.
If the value of a package is greater than €150, then the customs duty which applies to the specific goods instead of the €3 customs duty charge will be due. For example, a package contains a pair of jeans (€100) and a pair of runners (€150), in this case the jeans will attract customs duty of €12 (12%) and the runners €25.35 (16.9%) plus VAT in addition to the €4 union handling fee so €41.35 plus any applicable VAT in total.
Speaking about the new fee, Ray Ryan, principal officer in Customs Division, explained: “This is the second change affecting eCommerce this year. It is important that online shoppers are aware of these changes so that they understand the total cost of their online purchases before making a decision to buy. We want to help people avoid unexpected costs either at checkout or when the goods are delivered to their doorstep.”
