Royal Mail EU customs charges in 2026: the Customs Duty Fee and Customs Handling Fee explained
Posting an order from Great Britain to a buyer in the EU with Royal Mail? Since 1 July 2026 every consumer parcel up to €150 pays a flat €3 EU duty per item, and since 1 November 2026 a further €2 EU handling fee per item, plus VAT. If you pay them through Click & Drop (PDDP), they show up as two extra lines at payment, "Customs Duty Fee" and "Customs Handling Fee", and Royal Mail adds its own handling fee (£1.00 per item for most EU countries, 50p for Ireland). Here is what those lines are made of, who pays, the new SKU and manufacturer ID fields and how to price for them, with Royal Mail's and the EU's own pages as sources.
The EU charges on a Royal Mail parcel
Royal Mail tells UK senders that a flat €3 customs duty applies per item on consumer (B2C) consignments worth up to €150 from 1 July 2026, including IOSS shipments, and that from 1 November 2026 the EU's €2 handling fee applies per item on distance sales, on top of the €3; VAT generally applies to the €2. Royal Mail counts a separate item for each distinct HS code, product description or country of origin.
From 1 July 2026 until 1 July 2028, a flat customs duty of €3 per item applies to consignments of €150 or less that are declared under IOSS or sent as postal consignments. Normal tariff rates are expected to apply once the EU customs data hub is ready.
From 1 November 2026 a Union handling fee of €2 per item (per declaration line, i.e. per distinct tariff line) applies to goods sold in distance sales (B2C e-commerce) to EU consumers from outside the EU, at any value, including over €150. It is in addition to the €3 duty, is not part of the customs value, is paid by the declarant (seller/IOSS holder, carrier or representative), has VAT charged on it, cannot be refunded (even on returns), and does not apply to private gifts. The amount is final: Commission Delegated Regulation (EU) 2026/2152 was published in the Official Journal (L series) on 21 October 2026. The €2 handling fee explained
VAT is due on the €2 fee because it counts as an incidental expense of the sale. With IOSS there is no import VAT on the fee, but if the seller charges the fee to the buyer at checkout it becomes part of the price on which IOSS VAT is declared. Without IOSS (the postal or carrier 'special arrangements', or the standard procedure, which covers every order over €150), the fee is added to the amount on which import VAT is charged. If the goods are returned, the VAT on the fee is refunded with the rest of the import VAT.
So a parcel with one kind of product pays €3 + €2 = €5 in EU charges, plus VAT on the €2 unless VAT is collected at checkout through IOSS. Two different products pay €10, three pay €15. Five identical T-shirts are still one item. Our guides to the €3 duty per item and the €2 handling fee have more counting examples.
The "Customs Duty Fee" and "Customs Handling Fee" lines in Click & Drop
In Click & Drop you decide for each order whether you or the recipient pays customs and handling fees, or set a default under Settings > Customs > Miscellaneous. On personal accounts, step 4 (Review/edit package contents) shows the estimated fees, with a 'Recalculate fees' button if you change the service or contents, and the Payment Confirmation page shows them as two lines, 'Customs Duty Fee' and 'Customs Handling Fee'; fees for several items in the same payment are added together. Online Business Account users pick from a dropdown whether the fees go on their account or to the recipient. No fees apply to personal correspondence or to gifts under £39 (€45) sent to the EU.
Click & Drop turns your choice into delivery terms: paying all duties, taxes and fees through Click & Drop or your business account is PDDP/DDP; the recipient paying is DDU/DAP; with an IOSS number you can pay duties and fees through Click & Drop (IOSS DDP) or leave them to the recipient (IOSS DDU). Royal Mail says that since 1 July 2026 customs fees apply to EU orders under £135, with exemptions only for gifts under £39 and documents.
Royal Mail does not publish a line-by-line formula for these two amounts. What goes into them, from Royal Mail's own pages: the €3 duty per item, the €2 EU handling fee per item and VAT (on the fee and, without IOSS, on the goods), plus Royal Mail's PDDP handling fee. If your Customs Handling Fee line shows £1.00 on an order to Germany or France (50p to Ireland), that is the same amount as Royal Mail's published PDDP handling fee. Check the totals against the PDDP charges on your account invoice, and price your EU listings so they cover them.
What the EU charges come to on small orders
Estimates from our calculator for a buyer in Germany (19% VAT), sent by post, dated 5 Nov 2026. Royal Mail's own handling fee (£1.00 per item for Germany when you pay through PDDP) is not included. Open a row to see the full breakdown, or change the destination.
| Order | Items (tariff lines) | €3 duty | €2 handling fee | VAT on the fee | VAT on goods | Try it |
|---|---|---|---|---|---|---|
| 1 hand-made mug, €25 | 1 | €3.00 | €2.00 | €0.38 | €5.32 | Open in calculator |
| A mug and a print, €45 | 2 | €6.00 | €4.00 | €0.76 | €9.69 | Open in calculator |
| Mug, print and tote bag, €70 | 3 | €9.00 | €6.00 | €1.14 | €15.01 | Open in calculator |
| Mug, print and tote bag, €70, sold on Etsy (IOSS) | 3 | €9.00 | €6.00 | none | €13.30 at checkout | Open in calculator |
"Items" are distinct tariff lines, not the number of pieces. UK-made goods do not escape the €3 duty under the UK–EU trade deal when VAT is collected through IOSS: see the fact below. A buyer in another EU country pays the same €3 and €2 but a different VAT rate.
If VAT is collected through IOSS, the €3 duty always applies, even to goods with preferential origin (e.g. UK goods under the TCA). Without IOSS, a preference can only be claimed on a full customs declaration (the 'H1' dataset), not on the simplified low-value ones; preferential goods are then outside the €3 regime, but the Union handling fee (from 1 November 2026) still applies. UK to Ireland customs charges
PDDP (you pay) or DDU (the buyer pays)
With Royal Mail's Postal Delivered Duty Paid (PDDP) service the import VAT and duties are paid at the destination and passed on to the sender, including a handling fee per item. Royal Mail's published account handling fees are 50p for Ireland, £1.00 for the rest of the EU, 50p for the USA, £4.00 for Switzerland and £8.00 for Norway. The €3 duty is not refundable. EU destinations: Austria, Cyprus, Denmark, Estonia, France, Germany, Ireland, Italy, Luxembourg, Malta, Netherlands, Portugal, Slovakia, Spain and Sweden (Luxembourg and Spain only up to €150; Estonia, Denmark and Slovakia consumer orders only; no PO boxes). Items without the correct data may be delivered duties unpaid or returned.
Royal Mail says some EU countries still offer delivered duties unpaid (DDU), where the recipient pays the tax, duty, import tax and handling fees before delivery, while with PDDP in Click & Drop all charges, including the EU handling fee, are calculated at checkout and paid by the sender.
With PDDP the buyer gets the parcel without a bill, which avoids refused parcels and bad reviews; build the charges into your EU price or shipping. With DDU the buyer is asked to pay before delivery, so tell EU buyers about it in your listing. For the trade-offs, see DDP vs DAP for Etsy, eBay and Shopify sellers and Do I need an IOSS number?
Etsy labels
Etsy says that from 1 November 2026, if you buy the shipping label on Etsy, the €2 fee per unique item per package will be accounted for; if you buy labels elsewhere, ask your carrier how it collects the fee. For EU product identifiers, labels bought on Etsy send your listing ID as the merchant product ID and your listing SKU (or the listing ID if there is no SKU) as the manufacturer product ID; with labels bought elsewhere you enter them yourself (the listing ID as merchant ID and the listing SKU as manufacturer ID, adding a SKU first if the listing has none) and should not leave those fields blank.
The new SKU and manufacturer ID fields (from 26 October 2026)
Click & Drop needs a Product SKU and a Non-standardised Manufacturer ID for every 'E-Commerce Goods' item to the EU; Royal Mail made them mandatory for items posted from 26 October 2026, ahead of the EU rule on 1 November, and postage cannot be applied until they are entered. If you are not the manufacturer, the Manufacturer ID should not be the same as your SKU. They are not needed for items from Northern Ireland to the EU.
From 1 November 2026, product identifiers (PIDs) must be declared to EU customs for every item sold to consumers in distance sales (B2C online orders) in consignments worth up to €150. Declaring them has been voluntary since 1 July 2026; enforcement starts on 1 November. B2B shipments are in principle not concerned. Read our PID guide
Click & Drop has retired the 'Sale of Goods' and 'Mixed' customs categories: use 'Commercial Sale of Goods' for business buyers (B2B) and 'E-Commerce Goods' for consumers (B2C). Click & Drop no longer uses the CN22 form.
Royal Mail's customs rules: every item needs an HS code of at least 6 digits and its own line (identical items can be grouped with a quantity), nothing may be declared at £0, and postage should be declared at a reasonable cost, not £0 or £0.01. A GB EORI number is GB plus 12 digits and an IOSS number IM plus 10 digits. No customs declaration is needed for items from Northern Ireland to the EU.
Royal Mail only asks for a manufacturer ID that differs from your SKU when you are not the manufacturer. Our EU product identifier guide explains which IDs to use, and the customs forms guide covers descriptions, HS codes and values.
Gifts and returns
Royal Mail says gifts between private individuals worth up to €45 pay no duty, while gifts above €45 pay €3 per HS code plus the €2 handling fee, collected from the recipient on delivery.
EU gift relief: a gift sent from a private individual outside the EU to a private individual in the EU pays no customs duty or VAT if its value is €45 or less (goods only, not postage), it is correctly declared, it is for personal or family use, the recipient has not paid for it and it is occasional, such as a birthday or anniversary present. If several items exceed €45, duty relief covers as many items as fit within €45 (an item's value cannot be split), but VAT is charged on the whole parcel. Alcohol, tobacco, perfume and toilet water are not exempt from VAT or excise. Customs gift allowances by country
Note: Royal Mail's page says the €2 handling fee also applies to gifts above €45. The EU's own texts describe the fee as applying to distance sales (online orders) and not to private gifts (see the €2 fee fact above). If you send a gift over €45, the €3 duty per item still applies; ask Royal Mail which charges its system adds. See customs gift allowances by country.
Royal Mail says that for consumer (B2C) returns the €3 duty cannot be refunded once the goods have been released into free circulation.
Dutch Customs says the fee itself is never refunded: not when delivery fails, not when the buyer refuses or returns the parcel, and not when the declaration was filed in the wrong customs system. Customs calculates it for each declaration (2 shirts, 3 sweaters and 1 hat in one parcel are 3 declaration lines, so €6), and declarants must provide a customs guarantee to cover it.
For what can be reclaimed when an EU buyer sends an order back, see international returns and duty refunds.
Receiving a parcel in the UK: the Royal Mail fee to pay
This page is about sending to the EU. If you are in the UK and Royal Mail has asked you to pay a fee on a parcel from abroad, that is UK import VAT or duty plus a handling fee:
When the buyer pays on delivery, Royal Mail charges an £8 handling fee and Parcelforce £12 (£25 for goods over £900). Couriers charge their own fees.
See the UK £135 VAT rule and our gift allowances page for when a charge is due.
Checklist for UK sellers posting to the EU
- Count the distinct products (tariff lines) in each EU order: each one adds €3 duty and €2 fee (plus VAT on the fee) on orders up to €150; the €2 fee applies above €150 too.
- Add Royal Mail's PDDP handling fee if you pay through Click & Drop: £1.00 per item for most EU countries, 50p for Ireland.
- Choose who pays in Click & Drop (Settings > Customs > Miscellaneous sets the default) and say so in your listing.
- Use the 'E-Commerce Goods' category for orders from consumers and fill in the Product SKU and Non-standardised Manufacturer ID on every item.
- Give every item a 6-digit HS code, a real value and a reasonable postage cost (never £0 or £0.01).
- Check the Customs Duty Fee and Customs Handling Fee lines on the Payment Confirmation page before you pay.
- Estimate an order in the calculator; for Ireland see UK to Ireland customs charges, and for the whole route the UK to EU route page.
This page is general information, not legal, tax or customs advice. Royal Mail's services, fees and Click & Drop screens can change; check its current pages linked below. See the disclaimer.
Sources for this page
- European trade insights: EU customs changes for UK senders (account guide last updated 27 October 2026), Royal Mail. Accessed 5 Nov 2026. Verified
- Council Regulation (EU) 2026/382 (abolition of €150 duty relief; €3 per item), EUR-Lex. Accessed 20 Oct 2026. Partly verified
- Council gives final green light to new customs duty rules for small parcels (11 Feb 2026), Council of the EU. Accessed 20 Oct 2026. Partly verified
- Union Handling Fee (UHF) – 1 November 2026 (published 30 Sep 2026), Revenue (Irish Tax and Customs). Accessed 22 Oct 2026. Verified
- Commission Delegated Regulation (EU) 2026/2152 of 21 September 2026 establishing the amount of the Union handling fee (OJ L, 21 Oct 2026), Official Journal of the European Union (EUR-Lex). Accessed 23 Oct 2026. Verified
- Handling fee for e-commerce (last update 22 Oct 2026), Dutch Customs (Douane). Accessed 3 Nov 2026. Verified
- Commission sets Union handling fee at EUR 2 per item (2 Oct 2026), CLECAT (industry association, secondary). Accessed 20 Oct 2026. Verified
- Addendum to the VAT e-Commerce explanatory notes: VAT treatment of the EUR 3 customs duty and of the EUR 2 Union handling fee (revised version 6 Oct 2026, PDF), European Commission (VAT One Stop Shop portal). Accessed 28 Oct 2026. Verified
- How to configure customs and handling fees for international orders (Click & Drop Help Centre), Royal Mail. Accessed 5 Nov 2026. Verified
- How international customs works in Click & Drop (Click & Drop Help Centre), Royal Mail. Accessed 5 Nov 2026. Verified
- Postal Delivered Duty Paid (PDDP), Royal Mail. Accessed 5 Nov 2026. Verified
- Prepare for EU customs updates (Etsy announcement, October 2026), Etsy (official Community announcement). Accessed 28 Oct 2026. Verified
- The temporary EUR 3 customs duty and the Union handling fee: Guidance for Member States and Trade (version of 5 Oct 2026), section 8 Product identifiers, European Commission, DG Taxation and Customs Union. Accessed 21 Oct 2026. Verified
- Guidance and legal text on temporary flat fee on low-value imports (8 Jun 2026, updated 20 Jul 2026), European Commission, DG Taxation and Customs Union. Accessed 22 Oct 2026. Verified
- Product identifiers for e-commerce imports mandatory from 1 November 2026 (news, 3 Nov 2026), European Commission, DG Taxation and Customs Union. Accessed 4 Nov 2026. Verified
- Postal customs hub, Royal Mail. Accessed 5 Nov 2026. Verified
- The temporary EUR 3 customs duty and the Union handling fee: Guidance for Member States and Trade (version of 5 Oct 2026), sections 5.1–5.4 and 6.2 (consignment, item, postal consignments, preferential origin), European Commission, DG Taxation and Customs Union. Accessed 22 Oct 2026. Verified
- Rules for duty relief on gift consignments (published 28 May 2026), Revenue (Irish Tax and Customs). Accessed 29 Oct 2026. Verified
- Duty relief (Council Regulation (EC) No 1186/2009), European Commission – Taxation and Customs Union. Accessed 29 Oct 2026. Verified
- Pay a fee (customs charges), Royal Mail. Accessed 5 Nov 2026. Verified
- Pay a customs charge for parcel deliveries, Parcelforce Worldwide. Accessed 20 Oct 2026. Partly verified
Rules change often: the latest change we tracked was on 10 Nov 2026 (US: the 178 China Section 301 product exclusions are extended to 9 January 2027). Alerts send one short email, with the source, only when a rule changes on a route you pick.