EU Duties: What You Need to Know

If you manufacture outside of the EU, an import duty will almost certainly apply to your campaign. This duty is charged based on product category, with nearly all common crowdfunding categories affected. Products manufactured in the EU are not subject to this duty and may qualify for VAT credit if you’re registered.

To be processed through customs, every item must be correctly classified and assigned an HS Code (Harmonized System Code), which is a global system used to identify and categorize products. You can look up codes using the EU TARIC database. Tariffs are then calculated based on this code, according to the official EU tariff schedule

Finding the right classification can sometimes be tricky (especially for custom or mixed-content items), so it’s worth taking the time to make sense of it. We’ve put together a table of commonly crowdfunded products to give you a quick overview, but be sure to always double-check the classification before you ship. If you work with us, we’ll walk you through the process step by step.

Final import rates depend on where your goods are made. The EU has trade agreements with dozens of countries that reduce or remove customs duties altogether. Products made in China usually fall under standard EU rates, a little higher than partner countries, but still far lower than what these goods are currently taxed in the U.S..

Watch Out for These Common Pitfalls!

Some pledge managers can’t handle duties properly

You’ll need a clear way to factor them into your pricing. But be careful: Import duties are calculated as a percentage of the total value, which includes both the price of the goods and the shipping cost. So, if you raise your product price or shipping fee, the duty will increase as well. VAT is applied afterward, based on this new total.

Do not add VAT and duties at the same time

It’s a common mistake to combine the two, but VAT is applied after duty, not added on top like a single percentage. If you treat them as one number and apply it incorrectly, you might overcharge your backers, or miscalculate what you actually owe. Either way, it’ll make your bookkeeping harder and your filings messier.

Some shipping companies charge admin fees per backer

Most creators have no idea what admin fees their shipping services tack on per backer, but they’re often steep. When you work with us, your goods are imported in one go, and those extra per-backer fees disappear. The more backers you have, the more it adds up, because avoiding per-backer fees keeps your supporters happy and leaves them with more to spend on your extras.