How do I sell to German shoppers with duties and VAT included?

To sell to German shoppers with nothing to pay on delivery, ship DDP and collect German VAT and any import duty at checkout. Show prices in euros with VAT already included, because German shoppers expect the price they see to be the final price. With FlavorCloud the landed cost at checkout is guaranteed, and for orders where the goods are worth €150 or less we handle EU VAT through the Import One Stop Shop (IOSS) for you.

How German duties and VAT work on ecommerce orders

• VAT applies to every order. Since July 2021 all commercial imports into the EU are subject to VAT, whatever their value. The standard German rate is 19%, and some goods qualify for the reduced rate of 7%.
• Goods worth €150 or less: VAT is charged at the point of sale through IOSS instead of at the border. For these orders FlavorCloud charges and accounts for the VAT, so the parcel clears without a bill for your customer.
• A flat €3 customs duty now applies to low value parcels. From July 1, 2026 the EU replaced the old €150 duty exemption with a simplified duty of €3 per item on consignments of €150 or less. It is a transitional measure that runs until July 1, 2028, while the EU builds its new customs data hub. On DDP orders it is collected at checkout like any other duty.
• Goods worth more than €150: import VAT and regular customs duty are charged when the parcel enters the EU. With DDP, we collect them at checkout and pay them at the border.
• Duty and VAT are worked out on more than the product price. Customs value includes the goods, insurance and freight, and VAT is charged on that value plus the duty.
• Excise goods are different. Products such as alcohol, tobacco and some fragrances do not get low value treatment.

For rates, customs valuation and surcharges, see our EU Import Guide: Germany.

How to set up your store for German shoppers

1. Ship German orders DDP

Make DDP the default for Germany so duties and VAT are paid at checkout. A parcel that arrives with a bill attached is a common reason shoppers refuse delivery. See Shipping with DDP.

2. Show prices in euros with VAT included

Set Germany up as its own market in your store and show prices in EUR. Prices shown to consumers in Germany are expected to include VAT, so a price that adds tax at the last step feels like a surprise. Round to price points German shoppers recognize, such as €29 or €49.

3. Decide how duties and fees appear

• All in pricing. With Localized Market Pricing, the product price already includes shipping, duty, VAT and fees.
• A clear breakdown. Show shipping, duty and VAT as separate lines. Shopify Plus merchants can add the Cost Breakout checkout extension.

4. Check your tax settings

If Shopify is set to collect taxes, FlavorCloud will not collect or remit them. Review your settings for the German market so VAT is not charged twice or missed. See Managing tax thresholds.

5. Get your product data right

Duty and VAT are based on the HS code, country of origin and declared value of each product, and the reduced 7% rate only applies to qualifying goods. See Managing your HS codes and Managing your country of origin.

6. Register your packaging

Germany's Packaging Act (VerpackG) applies to sellers outside Germany who ship packaged goods directly to German consumers, including the shipping box and filler. Register in the LUCID packaging register and join a packaging compliance scheme before you start selling. Electronics and batteries have their own registration rules.

7. Make returns easy to understand

EU shoppers have the right to withdraw from an online purchase within 14 days, and German shoppers return online orders often. State clearly how returns work, who pays return shipping and how refunds are made. Our returns FAQ for merchants has wording you can adapt.

FAQs

Do I need to register for VAT in Germany?

For orders where the goods are worth €150 or less and ship through FlavorCloud, we handle VAT through IOSS. Higher value orders, stock held in the EU and your wider EU sales may create obligations for your own business, so check Independent foreign sales and revenue tax registration and talk to your tax advisor.

Will my German customers pay anything when the parcel arrives?

Not on DDP orders. Duties and VAT are paid at checkout, and the guaranteed landed cost means nothing more is collected at the door.

Does the €3 duty apply to every product in the order?

It applies per item in a low value consignment, so a parcel with several items can carry more than €3. FlavorCloud includes it in the duties calculated at checkout, so you do not need to work it out yourself.

Do the same rules apply to the rest of the EU?

The IOSS rules and the €3 duty apply across the EU. VAT rates and some national rules, such as packaging registration, differ by country. See our country import guides for each market, such as the EU Import Guide: Netherlands.

Questions about selling to Germany? Contact your FlavorCloud account manager.