Did you know? Shipping cost is included in the shipment value when calculating the VAT

From July, the shipments ordered from outside of the EU are no longer exempt from VAT and all parcels must be declared. How is the value of the parcel calculated and what does the amount of tax payable depend on?

All shipments ordered from outside of the EU are taxed with VAT. Including those costing less than 22 euros, which were exempt from VAT before 1 July 2021. Shipments costing 150 euros or more are also subject to customs duty in addition to VAT, there will be no changes to the calculation of customs duty.

The parcel sender will determine the shipment cost. If the goods value indicated by the sender differs from the actual purchase price, the recipient can adjust the cost in Omniva or the Tax and Customs Board e-service by presenting a document that proves the cost.

The recipient must also consider that shipping cost is counted in the shipment value as well when calculating the VAT. For example, if the item costs 140 euros and shipping is 15 euros, then the total shipment value is 155 euros, and VAT (20%) from this sum is 31 euros.

This is an EU-level amendment. The aim of the amendment is to reduce tax frauds and ensure equal competition conditions for EU companies compared to companies located outside of the EU.

Read more about the tax amendments and declaring procedure implemented from 1 July on the Omniva webpage: https://www.omniva.ee/maksumuudatused