What you need to know before shopping outside the EU in Cyprus

Cyprus Customs Department explains new €3 duty on low-value online imports Consumers in Cyprus ordering goods from outside the European Union will begin paying a temporary €3 customs duty per product category from July 1, 2026. Due to this change, the Customs Department has issued some practical examples to explain how the new rules will work in practice. The guidance comes ahead of the implementation of a new European Union customs framework that abolishes the longstanding exemption from customs duties on low-value consignments worth less than €150 arriving from non-EU countries. Under the new system, a temporary flat-rate duty of €3 per product category included in a shipment will apply to goods purchased online from third countries. The measure will remain in force until July 1, 2028, after which standard customs duties based on the specific classification of goods will be introduced. According to the Customs Department, consumers purchasing a parcel from Asia containing three different items, such as a blouse, a pair of earrings and a keyring, will pay €3 for each category of product, resulting in a total customs charge of €9. In addition, VAT will be calculated on the total value of the shipment, including the customs duty. The department provided a second example involving a parcel containing a silk blouse and a cotton T-shirt. Although both are clothing products, they are considered different categories for customs purposes. As a result, the consumer would be charged €6 in customs duties, equivalent to €3 for each category, plus VAT on the total value including the duty. In a third example, the department explained that if a parcel contains two or more identical cotton T-shirts, these are treated as a single product category. In that case, the customs duty would amount to €3 in total, regardless of the number of identical items, with VAT again applied to the overall value including the duty. The Customs Department clarified that consumers will either pay the duty during the online checkout process or upon delivery of the goods. Some websites and e-commerce platforms are expected to collect the duty at the point of purchase. Where this occurs, the final amount payable should be clearly displayed during checkout and no additional customs charge will be collected upon delivery. Other online retailers may not collect the duty in advance, the department said. In those cases, the postal service or courier company will request payment of the €3 charge per product category before releasing the parcel to the customer. The department also addressed the issue of returns. It explained that returning a product does not automatically entitle the consumer to a refund of the €3 customs duty paid on that item. However, the duty may be refunded following approval by customs authorities if a justified request is submitted. Such refunds may be granted where products are defective or where the goods delivered do not comply with the terms of the original purchase agreement. The department added that VAT refunds are governed by the policies of individual businesses. Some sellers reimburse VAT when items are returned, while others do not, regardless of whether the purchaser is a taxable person. Consumers were urged to review the “Terms and Conditions” and “About Us” sections of online retailers before placing orders. This allows buyers to determine where a business is physically based and from where goods are dispatched. It also enables consumers to verify whether customs duties are included in the advertised price, calculate the full cost of an order in advance and examine return policies carefully. “In this way, consumers can avoid unexpected charges, delivery delays and unpleasant surprises when shopping online from countries outside the European Union,” the department said. The new customs regime forms part of the European Union’s broader Customs Reform programme, which aims to modernise customs procedures, improve consumer protection and create fairer competition within the rapidly expanding e-commerce market. According to the European Commission, nearly 5.9 billion low-value items entered the EU directly from third countries in 2025 without attracting customs duties under the existing exemption. The commission has argued that advances in customs digitalisation have removed the administrative obstacles that originally justified the exemption. It has also pointed to growing concerns over product safety. Targeted inspections carried out across all 27 EU member states during 2025 found that more than 60 per cent of checked products, including cosmetics, toys and electronics, failed to comply with EU standards because of missing safety documentation, prohibited ingredients or incorrect labelling. EU officials maintain that the new charge will help ensure that imported products are subject to the same standards and obligations as goods sold by businesses operating within the bloc. From November 1, 2026, product identifiers will become mandatory for imported goods sold through distance sales channels, although businesses will be allowed to provide this information voluntarily from July 1, 2026. The Customs Department also reiterated that existing exemptions remain in place for non-commercial gifts valued at up to €45 sent between private individuals, provided no payment is involved. It stressed that the new duty forms part of the taxable value used to calculate VAT and that the cost must ultimately be borne by the final consumer.