When you buy from a European seller and ship the goods to the United States, you generally do not pay VAT on that purchase; EU law treats exports as zero-rated, so French TVA, German MwSt, and their equivalents come off the price at checkout. What you do pay is on the U.S. side: customs duties under the Harmonized Tariff Schedule, additional tariffs introduced in 2025, and, since February 2026, those charges apply to every package regardless of value.
Why VAT Comes Off at Checkout
The EU’s VAT Directive (2006/112/EC) exempts goods shipped outside the EU under Article 146.1EUR-Lex. Council Directive 2006/112/EC VAT is a consumption tax, and if the item is being consumed in the United States rather than in France or Germany, the European country has no claim to tax it. The seller “zero-rates” the transaction — the tax technically applies, but at zero percent — and the price you see reflects the net cost of the item.
To qualify, the seller has to document that the goods actually left EU territory, usually through an electronic export certification. French and German sellers proving TVA or MwSt exemption go through the same basic process: customs confirmation that the package crossed an EU border.2Service Public Entreprendre. Imports and Exports (Outside the European Union) VAT Rules
If a European retailer’s checkout is charging you VAT on an order shipping to a U.S. address, something is wrong with their system. Contact them before the order ships and ask for the export price. Once the transaction is complete, recovering VAT from a foreign seller is difficult.
What You Pay Instead: U.S. Customs Duties
The VAT coming off does not make your purchase tax-free on arrival. The United States imposes customs duties on imports, with rates set by the Harmonized Tariff Schedule. Classification is genuinely detailed: a wool suit’s duty rate depends on whether it contains synthetic fibers, where it was assembled, and even whether it has darts.3U.S. Customs and Border Protection. Determining Duty Rates
For common European consumer purchases, rates vary widely. Many electronics enter at zero percent because of international trade agreements on technology products. Clothing typically carries duties between roughly 10 and 30 percent depending on material and garment type. Wine, cheese, ceramics, and leather goods each have their own rates, and some European specialty foods face surprisingly steep charges. Approximate rates are searchable through the U.S. International Trade Commission’s tariff database.4U.S. International Trade Commission. Harmonized Tariff Schedule
Most duties are calculated as a percentage of the declared value (an “ad valorem” rate), though some categories use weight, volume, or per-unit rates. Declared value generally starts from the price you paid, and CBP looks at the actual transaction price.
Additional Tariffs Since 2025
On top of the regular HTS rate, additional tariffs imposed beginning in April 2025 apply to European goods. A baseline additional tariff applies to imports from all trading partners, and sector-specific rates affect certain categories. A September 2025 agreement between the U.S. and EU established a combined 15 percent tariff rate on passenger vehicles and auto parts from Europe.5Federal Register. Implementing Certain Tariff-Related Elements of the US-EU Framework on an Agreement on Reciprocal Total duty on any given item can be meaningfully higher than the base HTS rate alone, and the picture keeps shifting as trade negotiations evolve.
The $800 Exemption Is Gone
For years, individual consumers could import goods worth $800 or less without paying anything. This de minimis threshold, established under 19 U.S.C. § 1321, let low-value packages clear customs with minimal paperwork and no tax.6Office of the Law Revision Counsel. 19 US Code 1321 – Administrative Exemptions It was why you could order a €200 sweater from a European brand and receive it without any additional charges.
That exemption no longer applies. A February 2026 executive order suspended duty-free de minimis treatment for all shipments, regardless of value, country of origin, or shipping method.7The White House. Continuing the Suspension of Duty-Free De Minimis Treatment for All Countries Every package arriving from Europe is now subject to applicable duties, tariffs, and fees. Packages sent through the international postal system (USPS or a foreign national post) are subject to specific duty rates set by the order; packages arriving through private carriers like DHL, FedEx, or UPS are subject to standard HTS rates plus any additional tariffs.
This is the single biggest change for casual online shoppers buying from European retailers. If your last order from a European site cleared without customs charges, expect that experience to change.
How You Actually Pay
How import charges reach you depends on how the seller ships.
Delivered Duties Unpaid
Most European retailers ship with duties unpaid, meaning customs charges are your responsibility on arrival. The carrier clears the package through customs, pays CBP on your behalf, then bills you for the duties plus a brokerage fee. Brokerage fees typically run from $10 to $50 depending on carrier and shipment value. You’ll get an invoice before delivery, a payment link through the carrier’s portal, or a request for payment at your door.
Ignoring the invoice does not make it disappear. The package can sit in a warehouse accruing storage fees or, eventually, be returned to the sender. The carrier has already paid CBP and needs to be reimbursed.
Delivered Duties Paid
Some European sellers, particularly larger brands, offer a “delivered duties paid” option. The seller estimates duties and tariffs at checkout, charges you upfront, and handles the customs process. Your package arrives with no additional charges. This is a commercial arrangement between you and the seller, not a government program, but it removes the uncertainty of surprise charges at the door and is usually worth taking when offered.
Gifts Sent From Europe
Gifts sent from a person abroad to a person in the United States have a separate, lower duty-free threshold that still exists. Under 19 C.F.R. § 10.153, a bona fide gift valued at $100 or less in the country of shipment can enter without duties.8eCFR. 19 CFR 10.153 – Conditions for Exemption The $100 limit applies to the total value of gifts in a single shipment, not per item. This gift exemption sits under a different subsection of 19 U.S.C. § 1321 than the suspended $800 general exemption.
The package must be clearly marked as a gift, and the exemption does not apply to items you ordered and paid for yourself, even if a friend physically ships them. Buying from a European website and having someone else drop it in the mail does not turn the purchase into a gift for customs purposes.
State Use Tax on Imports
Federal customs duties are not the only tax that can apply. Most states impose a use tax on purchases from out-of-state or foreign sellers when sales tax was not collected at checkout. If you buy a handbag from an Italian retailer and no state sales tax was charged, in principle you owe your state’s use tax on that purchase. Combined state and local rates range from zero in the handful of states without a sales tax to over 10 percent in the highest jurisdictions.
Enforcement of consumer use tax on small international purchases is minimal, and most individuals don’t report these purchases on their state returns. But the legal obligation exists in the vast majority of states, and on larger European purchases the exposure is worth factoring into your total cost.
Do Not Ask the Seller to Write a Lower Value
Declaring a lower value on the customs form to reduce duties is a violation of federal law. Under 19 U.S.C. § 1592, civil penalties scale with severity:9Office of the Law Revision Counsel. 19 US Code 1592 – Penalties for Fraud, Gross Negligence, and Negligence
- Negligence: up to the lesser of the domestic value of the goods or two times the duties owed.
- Gross negligence: up to the lesser of the domestic value or four times the duties owed.
- Fraud: up to the full domestic value of the merchandise.
Separate criminal statutes, including 18 U.S.C. § 542, can apply when someone knowingly makes false statements on customs declarations, carrying potential imprisonment. On a $5,000 shipment fraudulently declared at $500, the civil penalty alone can reach $5,000, before any criminal exposure. Asking a European seller to mark an order as a “gift” or write down a lower value is the most common way people stumble into this, and CBP sees it constantly.
Getting Duties Back on Returned Merchandise
If you return goods to a European seller after paying U.S. customs duties, you may be able to recover those duties through drawback, a refund of duties, taxes, and certain fees paid on imported goods that are later exported or destroyed.10U.S. Customs and Border Protection. Drawback
The process is not simple. All drawback claims are filed electronically through CBP’s Automated Commercial Environment system. You’ll need to submit CBP Form 7553 before exporting or destroying the merchandise, then upload proof of exportation with the claim. For most individuals, this means hiring a licensed customs broker. On a $50 duty charge the broker’s fee will likely eat the refund, so drawback is really only worthwhile on higher-value purchases.
The seller’s return policy and the customs refund are separate transactions with separate entities. Getting your purchase price back from the European retailer does not automatically get your duties back from CBP, and many buyers don’t realize this until after the item has already shipped back.