The EUR 150 Threshold: What It Actually Exempts

The EUR 150 threshold is one of the most misunderstood rules in EU imports. It relieves customs duty on consignments up to EUR 150. It does not relieve VAT.

Consignment, not order

The threshold applies to the total value of goods in one consignment — meaning one shipment from one sender to one recipient on one day. Splitting an order into several parcels can push each parcel under the threshold, but customs authorities treat artificial splitting as abuse.

Worked example

A shipment of EUR 120 of goods plus EUR 25 freight to Germany:

• Customs value: EUR 145 (goods plus transport to the border).
• Duty: 0, because the consignment is at or below EUR 150.
• VAT: 19% of EUR 145 = EUR 27.55, still payable.

Now the same goods at EUR 180: duty applies at the product rate (say 12% = EUR 21.60), and VAT is charged on 180 + 25 + 21.60.

Why sellers get this wrong

They assume 'under 150 means tax-free' and quote a landed cost with no VAT. The buyer then receives a bill, refuses the parcel, and the seller pays return freight. Quoting VAT-inclusive prices from the start avoids the whole loop.

What is changing

The EU has proposed removing the duty relief as part of the customs reform package. If it passes, every consignment will carry duty regardless of value. Build your pricing model so that a change in the threshold does not wipe out your margin.