Customs and VAT: Importing from China to Europe — 2026 Guide

AliExpress, Temu, and Shein have fundamentally changed how Europeans buy from Chinese manufacturers. These platforms are also the most common source of customs confusion — particularly around VAT, duty thresholds, and what “free shipping” actually means once your parcel reaches EU customs.

What changed in July 2021 — and why it matters

Before 1 July 2021, there was a €22 VAT exemption on EU imports. A €20 order from AliExpress arrived with no additional charges. That exemption no longer exists.

Since July 2021:

• VAT applies from €0. Every import from China — regardless of value — attracts EU import VAT at your country’s standard rate (typically 20–21%).
• IOSS was introduced to simplify collection for e-commerce. Major platforms collect and remit VAT for you at checkout — so the price you see already includes VAT, and no additional charge arrives with the parcel.
• The €150 customs duty threshold remains. Below €150, no duty. Above €150, duty applies based on goods category.

IOSS — why you usually don’t see extra charges on AliExpress

IOSS (Import One-Stop Shop) is the EU scheme that allows e-commerce platforms to collect VAT on behalf of the buyer and remit it to EU tax authorities. For buyers, it means:

• The checkout price already includes your country’s VAT
• The parcel arrives with no additional payment required
• The carrier’s label carries an IOSS number — customs can verify VAT has been collected

The three largest Chinese shopping platforms are all IOSS-registered for orders under €150:

Practical implication: if you buy a €50 item on AliExpress and the price shown is, say, €52, the €2 difference likely includes your country’s VAT. The parcel arrives with no further charges.

When extra charges DO arrive

You will receive a customs payment request from the carrier in these cases:

Order exceeds €150

IOSS only covers orders under €150. Above €150, standard EU customs clearance applies:

• VAT at your country’s rate on the full customs value (goods + shipping + insurance)
• Customs duty at the applicable rate for the goods category
• Carrier customs handling fee (€15–30)

Watch out for shipping cost tipping the balance. A €140 item with €15 shipping has a customs value of €155 — above the €150 threshold, triggering both duty and VAT.

Seller is not IOSS-registered

Smaller Chinese sellers and B2B platforms (Alibaba, DHgate, 1688) are often not IOSS-registered. If the seller’s package has no IOSS number, EU customs will charge VAT at delivery — even for low-value orders.

IOSS number is missing or invalid

Occasionally, IOSS-registered platforms make errors on paperwork — especially for split shipments or orders fulfilled from a non-registered warehouse. If customs cannot verify IOSS, they apply standard VAT rules.

Customs duty rates for Chinese goods

Worked example — clothing from AliExpress

You order €160 of clothing from AliExpress (above the €150 threshold):

• Goods value: €160
• Shipping: €0 (free shipping from seller)
• Customs value: €160
• Customs duty (clothing 12%): €19.20
• VAT (21% on customs value + duty): (€160 + €19.20) × 21% = €37.63
• Carrier handling fee: ~€20
• Total additional charges at delivery: ~€77

Your €160 purchase effectively costs €237. At this point, compare to EU-based clothing retailers — the price advantage may largely disappear.

Is it actually cheaper to buy from China?

For orders under €150 from IOSS-registered platforms: the VAT is already included in the price, so the “real” price comparison is straightforward. Chinese platforms are often genuinely cheaper for electronics accessories, phone cases, and generic goods.

For orders over €150: add 20–21% VAT, 0–17% duty, and €15–30 carrier fee to get the true landed cost. For clothing, the duty alone adds 12% — making the effective price premium over EU competitors smaller than it appears.

The electronics exception is significant: laptops, phones, and audio equipment carry 0% EU import duty from China. For high-value electronics, Chinese pricing can represent genuine savings even after VAT.

Anti-dumping duties — a note for buyers

In addition to standard customs duty, the EU applies anti-dumping duties (ADD) on certain Chinese product categories where Chinese exporters have been found to sell below fair market price. Categories with significant anti-dumping duties include:

• Steel and aluminium products
• Solar panels (certain types)
• Ceramic tiles
• Certain types of bicycle components

For typical consumer goods (electronics, clothing, accessories), anti-dumping duties rarely apply. Check the EU TARIC database if you are importing specialised goods.

Prohibited and restricted items from China

Regardless of customs rules, some items cannot be imported from China into the EU:

• Counterfeit branded goods — any product using a trademark without authorisation (fake Nike, fake Louis Vuitton, etc.) will be seized by customs and destroyed. The buyer may face a fine.
• Certain electronic devices — items not meeting EU CE marking requirements may be stopped at customs. This includes some radio transmitters, high-powered laser pointers, and non-compliant chargers.
• Certain food and supplements — Chinese herbal products, supplements, and foods must comply with EU food safety regulation.
• Weapons and weapon replicas — airsoft guns, certain knives, and replica weapons have category-dependent import restrictions.

Summary

For AliExpress, Temu, and Shein orders under €150: VAT is included in the price (IOSS), no surprise charges. For orders above €150 or non-IOSS sellers: VAT (20–21%) applies on the full customs value, duty applies by category (clothing 12%, electronics 0%), plus carrier handling fee (€15–30). The break-even calculation only makes sense after adding all charges. For electronics, China remains price-competitive even after VAT. For clothing above €150, the duty + VAT erodes the price advantage significantly.