Low-value consignments

What it means

Low-value consignments are shipments of goods from outside the EU with an intrinsic value of up to 150 euros. So far no customs duty has been charged on them thanks to a customs duty relief, but since July 2021 VAT has been due from the first euro, because the earlier VAT exemption for small consignments was abolished.

Intrinsic value is the price of the goods themselves, excluding transport and insurance. The 150-euro threshold applies to the whole consignment, not to individual items. The duty relief does not cover alcohol, tobacco, perfumes and toilet waters, on which duty and excise are always payable.

The regime mainly concerns cross-border e-commerce, where consumers buy from online shops and platforms outside the EU. The EU has decided to phase out the customs duty relief for consignments up to 150 euros, so the current rules, which may change, need to be watched.

How it works in practice

Sellers outside the EU can use the IOSS scheme. VAT is then collected at the point of sale and declared in one EU country, and the parcel clears customs without the customer paying anything extra on delivery. Without IOSS, the recipient pays VAT on delivery, often together with the carrier's customs handling fee.

For a Slovak business buying small goods from Asia, it matters that import VAT is charged even on small amounts. A VAT payer can then deduct it if the goods are used in the business, with the customs document or the carrier's document as evidence.

For consignments up to 150 euros, a simplified customs declaration with a reduced data set is used, often filed by the carrier or post office. For higher values a standard declaration is needed and duty is charged under the customs tariff.

What to watch out for

Undervaluation, where the seller declares a lower value to avoid duty, is a widespread problem. Customs may check the value and assess duty and VAT, often with a penalty for the recipient. It is important to keep proof of the price actually paid.

Splitting an order into several smaller parcels so that each stays below 150 euros is treated by customs as circumventing the rules. For commercial imports on a larger scale, it is usually cheaper and safer to import the goods in the standard way with a correct customs declaration.