How is customs value calculated - does it include shipping cost?

Short answer Customs value is calculated based on the total cost of the goods, which includes the purchase price, shipping costs, and any insurance fees. Therefore, when determining the customs value for VAT purposes, shipping costs are indeed included. What to check Invoice from the seller for the purchase price of the goods. Shipping costs listed separately on the invoice or shipping confirmation. Any insurance fees that may apply to the shipment. Local customs regulations for your specific country within the EU. Carrier's handling fees that may be applicable upon delivery. What to do next Gather all relevant documents, including the invoice, shipping confirmation, and any additional fees. Calculate the total customs value by adding the purchase price, shipping costs, and any insurance fees. Check the applicable VAT rate for your country to determine how much VAT you will need to pay. If using the Import One-Stop Shop (IOSS) for low-value shipments, ensure that the seller has provided the correct IOSS number. Submit the necessary customs declaration to your local customs authority, including all calculated values. Be prepared to pay any customs duties or VAT upon delivery, as required by your local regulations. Common pitfalls Overlooking additional costs such as handling fees charged by the carrier. Failing to include insurance fees in the customs value calculation. Not verifying the correct VAT rate for your specific country. Assuming that shipping costs are not included in customs value, leading to underpayment of VAT. Delays in customs clearance due to incomplete documentation or miscalculated values. Pro tip Always keep a detailed record of all transaction documents and communications with the seller and carrier to facilitate a smooth customs process.