This page explains what the duty-free or tax-free import threshold into different countries is, how the customs value is formed (including or excluding delivery costs), and who usually pays taxes and duties on import.
You will learn why in some countries delivery is included in the tax base for calculating taxes (CIF), and in others not (FOB), and also why in most cases the sales tax and duties are paid by the recipient of the order.
What is the current situation with the duty-free threshold for deliveries to the USA?
- Duty-free threshold in the USA has been canceled as of August 29, 2025.
All shipments, regardless of value, are subject to customs clearance and taxation.- For Ukraine the base duty rate — 10% of the estimated value of the goods.
- For EU countries (including Poland and Czechia) – 15%.
- A surcharge may be assessed based on the HS code, which ranges from 0% to tens of percent, depending on the product category. Some codes are exempt from duty.
- International marketplaces recommend paying duties for shipments up to $800 in the DDP (Delivered Duty Paid) format — that is how delivery through Western Bid works.
- For Australia this amount will be AU$1000 (approximately US$700).
- For Japan, less than $93 USD (including shipping).
- For Canada, less than $17 USD.
- And in EU countries for shipments outside the union since July 1, 2021 there is no longer a duty-free import threshold. All parcels up to €150 are subject to VAT, and above this value also to customs duty. On some platforms (Etsy, Ebay) VAT for goods up to €150 is added and paid by the buyer immediately. You can view the new rules for shipments to the EU and their processing here.
More details about duties for other countries can be found from up-to-date information sources on the Internet.
Please note, that sometimes the cost of delivery is included in the valuation method (CIF), and sometimes not (FOB). Sales tax and duties (if any) are always paid by the recipient; in many countries this process is automated. Typically, a buyer who chooses fast delivery is willing to pay taxes and fees.
How does the shipping cost affect customs duties
| Method of valuation | What is included in the customs value | What this means for the buyer |
|---|---|---|
| CIF (Cost, Insurance, Freight) | Cost of the goods + international shipping + insurance. | Taxes and duties may be charged on the value of the goods together with shipping and insurance, increasing the total tax amount. |
| FOB (Free On Board) | Only the cost of the goods, excluding international shipping and insurance. | Taxes and duties are usually calculated from the “net” value of the goods; the delivery cost is not included in the tax base. |
| Details | The method depends on the importing country’s legislation, not only on the contract terms. | Even if you sell under FOB terms, the importing country may assess taxes based on CIF, including delivery in the customs value. |
How the duty-free or tax-free threshold works
| Situation | What happens to the package | What the buyer sees |
|---|---|---|
| Value of goods + shipping below the threshold | Sales tax and duties are typically not charged, the package passes with no additional payments. | The buyer receives the package with no extra payment at customs; the final cost matches what was paid in the store. |
| Value of goods + shipping above the threshold | The government charges VAT/sales tax and, if applicable, duties based on the shipment’s customs value. | The buyer receives an invoice for taxes and duties from the postal service or customs before or upon receipt of the package. |
| The country changed or repealed the threshold | Even inexpensive shipments may be taxed; rules are frequently updated. | The buyer may face taxes even for small orders; it’s important to inform buyers about this in advance. |
Because specific thresholds and rules change regularly, the latest information for each country should be checked in official sources or on the websites of international carriers.
Frequently Asked Questions about the duty-free/tax-free import threshold
What is the duty-free or tax-free import threshold?
What is the duty-free or tax-free import threshold?
This is the maximum value of the shipment (including or excluding delivery), within which the recipient country does not charge import taxes and duties. If the value of the shipment exceeds the threshold, the recipient pays taxes and, if necessary, duties in accordance with the rules of their country.
Does the buyer always pay taxes and duties?
Does the buyer always pay taxes and duties?
In most cases, especially under standard delivery terms for online orders, sales tax and duties are paid by the recipient when the parcel clears customs. In some delivery schemes (DDP), the seller may pay the taxes in advance, and the buyer sees the already “net” price with all charges.
Why is the delivery cost sometimes included in the tax base?
Why is the delivery cost sometimes included in the tax base?
In countries that apply the CIF-type valuation method, the customs value includes not only the goods but also international shipping and insurance. Because of this, taxes are assessed on a larger amount than the price of the goods alone. In FOB systems, only the value of the goods, excluding delivery, is taxed.
Why is it important to check the current threshold for each country?
Why is it important to check the current threshold for each country?
Thresholds for duty-free/tax-free import and taxation rules for small parcels change regularly. In some countries, thresholds are lowered, and in some cases — completely abolished, so you should always check the latest information in official sources before shipping.
How to explain to the customer the possible additional costs?
How to explain to the customer the possible additional costs?
It is recommended to indicate in product descriptions or shipping terms that additional taxes and duties may apply on import into the buyer’s country, and that they are usually paid by the recipient. You may also provide links to official sources or briefly explain how the duty-free import threshold works.
Please note: duty-free and tax-free import thresholds, as well as the rules for calculating the customs value (CIF/FOB), regularly change. Before shipping goods to a new country, please be sure to check the current requirements on the official websites of the customs or tax authorities.