Tax Rates in Europe

Shipping in Europe: Customs duty rates in Portugal and other countries

The European Union is a free movement zone, which means that import taxes on products moving between member countries are virtually zero. This applies not only to products produced in member states, but also to any product that has already gone through the customs clearance process in the country of entry into the EU and pay the respective customs fees. This is why, in shipments between countries within the European Union, any possible import fees are already included in the cost of the delivery services .

However, there are rules that apply to certain specific products such as alcoholic beverages and tobacco , products that are considered a state monopoly and are therefore subject to special taxes. Depending on different local laws, certain products may even be prohibited from entering or leaving certain countries. See our page about restricted and prohibited items to find out more.

Exemption from customs duties in Portugal

It’s not all bad news for those who want to send a package internationally. There are several cases where customs fees are waived during the customs clearance process for packages in Europe:

  • When a package is sent from private individuals to private individuals, it is not of a commercial nature (e.g. declared as a gift) and has a value of less than €45. To check the amount of customs duty that will be applied to your gift sent from a non-European country, consult the Integrated Tariff of the European Communities (TARIC) database.
  • Purchases with a total commercial value of less than €150.
  • There is also a possibility of exemption from customs duties when the items in question are part of the so-called zero customs duty.
As of 01/07/2021, VAT is now charged on all products entering the European Union, regardless of their value.

What import taxes do I have to pay for shipments from outside the EU?

There are two main types of import taxes in Portugal that apply to international shipments. Although it is often thought that the cost of customs is one number, the truth is that there are two completely different rates:

  • Customs fees – are basically the payment for the customs service (storage, procedure). These are fees that must be paid in order to be able to collect the product from the customs facilities.
  • Customs duty rates – are the taxes applied by EU countries on imported products and which may vary depending on the category of each product.

It is also important to remember that, in Portugal, in addition to customs fees and customs duties, the following are also charged:

  • VAT at 23% on the value of the product + shipping + insurance + customs duty fees;
  • Special Consumption Taxes (IEC) applicable to alcoholic beverages, tobacco and fuels (European or third country imports);
  • Vehicle Tax (ISV) , if you wish to import a vehicle (European or third country imports).

Calculation of product value for charging import taxes

Each country has its own method of calculating the amount of customs duties on imported products, but the declared value is always one of the main factors to be considered. The calculation of the declared value may vary slightly from country to country, but in general it is carried out based on the following points:

  • The purchase value of the product;
  • The value of identical products produced in the importing country;
  • The value of similar products produced in the importing country;
  • Selling price of the product;
  • Cost of production of the product; or
  • Adaptation or combination of the various previous methods.

For specific information about your case, we recommend that you check the current rules of the importing country directly. In some cases, certain costs may be added or reduced depending on the conditions and the product in question.