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EU & UK Import VAT Policy — What to Expect When Ordering from Japan

Updated: Feb 21

Since July 2021 (EU) and January 2021 (UK), all goods imported from outside the European Union and the United Kingdom are subject to VAT upon arrival — regardless of value.

The previous low-value VAT exemption has been removed.

This means that when ordering from Japan, import VAT will apply even for small purchases.


How VAT Is Collected

When your parcel arrives in your country:

  1. The carrier submits the shipment to customs.

  2. Local VAT is calculated based on your country’s rate.

  3. The carrier notifies you of the VAT amount due.

  4. After payment, the parcel is released for delivery.

VAT rates vary by country (typically between 17%–25%).


Shipping Options to EU & UK

On the positive side, unlike the current U.S. tariff situation, postal shipping remains available to most EU countries and the UK.


We offer:

  • Japan Post (EMS / Small Packet Registered Mail ) 7-14 days

    Lower shipping cost. In many cases, postal operators charge lower or minimal processing fees.

  • DHL / FedEx Priority International (5-7 days)

    Faster delivery.Carrier clearance fees apply in addition to VAT.

    Processing fees vary by carrier and by country.


VAT & Import Duty from Japan to EU & UK

Why We Do Not Use IOSS


The EU introduced the IOSS (Import One-Stop Shop) system to allow sellers to collect VAT at checkout for orders under €150.


However, IOSS requires:

  • EU tax registration

  • EU intermediary representation

  • Ongoing VAT filing and compliance

  • Administrative cost and liability



We do not operate like large corporate selling platforms like Amazon, Etsy or Ebay which offer pre-calculate, pre-paid duty service at check-out.

As a small independent business based in Japan, we do not have an EU distribution center or tax entity. Implementing IOSS would require significant legal and operational infrastructure that is not feasible for a small local business.


Therefore, VAT is collected by your local customs authority upon import.


Why This Matters for Small Businesses


Large global marketplaces may absorb VAT handling into their systems.

Small international businesses operate differently:

  • We ship directly from Japan.

  • We comply with export and customs documentation requirements.

  • Import VAT is assessed by your country’s tax authority.

  • We do not receive VAT or clearance fees.

We understand that VAT and carrier fees can feel unexpected. These charges are government-imposed taxes, not additional product markup.


Before Placing an Order

Please consider:

  • VAT will apply regardless of order value.

  • Carrier processing fees may apply (especially with express couriers).

  • Postal shipping may reduce handling charges, though VAT still applies.


If you have questions about shipping options, feel free to contact us before ordering.


If VAT or Import Charges Are Refused


Import VAT and any applicable customs or carrier handling fees are determined by your local customs authority and collected by the carrier upon delivery.


If VAT or import charges are refused or remain unpaid past the due date:

  • The parcel will be returned to Japan.

  • Outbound and return shipping costs are non-refundable.

  • Any additional carrier fees incurred will be deducted from the refund (Including processing fee, tax, and VAT/import duty) .

  • Payment processing or bank fees may also apply.


Refunds (if applicable) will be processed only after the parcel has been safely returned to us. Usually takes 4-6 weeks including shipping time and reverse- custom clearance process.


Please refer to our full Store Policy and Shipping & Handling pages for detailed terms.


And hope you choose to continue to support small businesses.


⚠ Important: Verify Carrier Payment Notifications


When import duties, VAT, or customs processing fees are due, DHL, FedEx, or your local postal operator may contact you by email or SMS.

Please exercise caution.


Fraudulent emails and phishing attempts sometimes impersonate shipping carriers and request payment.


Before making any payment:

  • Always verify that receiver name and the tracking number matches your order.

  • Access the carrier’s website directly (do not click suspicious email links).

  • Log in manually to check your shipment status and payment request.


If you are unsure whether a notification is legitimate, please contact the carrier directly using their official website.

We are not responsible for payments made to fraudulent third-party websites.


 
 
 

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