Cyprus Customs has set out examples of how the new temporary duty on low-value online purchases from outside the EU will be applied, following changes to customs rules for e-commerce shipments.
The measure removes the customs duty exemption for low-value consignments worth less than €150 and introduces a temporary charge of €3 for each product category included in a parcel.
According to the Customs Department, a parcel bought online from Asia containing three different items, such as a blouse, a pair of earrings and a keyring, would be charged €3 for each category. In that case, the total duty would be €9, with VAT then applied to the full value of the shipment, including the duty.
In a second example, a parcel containing a silk blouse and a cotton T-shirt would be treated as including two different product categories. The duty would therefore be €6, again with VAT added to the total value, including the customs charge.
However, Customs said that if a parcel contains two or more items of the same type, such as several cotton T-shirts, these would be treated as one product category. The duty in that case would be €3, plus VAT on the total value.
The department clarified that consumers will pay the duty either when completing the online purchase or before delivery. Some websites and platforms may collect the charge at checkout, where the final amount should be clearly displayed, meaning there should be no additional duty payment at delivery.
Where the duty is not collected in advance, the postal service or courier company will request payment of €3 per product category before the parcel is handed over.
Customs also noted that returning a product does not automatically mean the €3 duty will be refunded. A refund may be granted only with Customs approval, following a justified request, in cases involving defective products or goods that do not meet the terms of the purchase contract.
The refund of VAT, meanwhile, depends on the policy of each business. Some sellers refund VAT, while others do not, regardless of whether the consumer is a taxable person.
Consumers are advised to check a seller’s “Terms and Conditions” and “About Us” pages before making a purchase, in order to identify the company’s physical base and the country from which the goods are dispatched. They are also urged to check whether the duty is included in the purchase price, calculate any additional costs before completing an order and review return conditions carefully.
Customs said these checks can help buyers avoid unexpected charges, delivery delays and unpleasant surprises when shopping online from outside the European Union.
