From 1 July, residents of Cyprus who regularly order products from overseas online marketplaces will need to factor in new charges. The Customs Department has published guidance on the introduction of a temporary €3 customs fee for each product category contained in parcels arriving from countries outside the European Union.
The new rules apply to online purchases valued at up to €150. Previously, such shipments benefited from a preferential customs regime, but this exemption has now been abolished. As a result, even small purchases from popular platforms such as AliExpress, Temu, Shein and other international websites may become more expensive.
The changes are part of a broader European initiative to reform the taxation of e-commerce. The aim is to create fairer competition between EU-based retailers and businesses from third countries that have long benefited from the existing exemptions.
How the New Fee Is Calculated
The key feature of the new rules is that the fee is charged not per parcel, but separately for each product category included in the shipment.
For example, if a customer orders a T-shirt, a pair of earrings and a keyring from an Asian country, these are treated as three separate product categories. In this case, the total customs fee will be €9. VAT is then calculated on the total value of the order, including the newly added customs fee.
If a parcel contains a silk blouse and a cotton T-shirt, these are also considered two separate product categories. The customs fee would therefore be €6, before VAT is applied. However, ordering multiple identical items does not increase the charge. If a customer buys two or three identical cotton T-shirts, they are treated as a single product category, meaning only one €3 fee is payable before VAT is added.
For this reason, shoppers in Cyprus are now advised to review the contents of their shopping baskets carefully, as ordering a wide variety of different items could significantly increase the final cost.
When Will the Additional Charges Be Paid?
The payment process will depend on the online marketplace. Some international retailers intend to include the new customs fee automatically during checkout. In such cases, customers will see the final price immediately and will not face additional charges when the parcel arrives in Cyprus.
If an online retailer does not support this system, the fee will need to be paid before the parcel is delivered. The payment will be collected by the postal service or courier company handling the shipment. This process is intended to avoid customs delays, but customers are advised to check delivery conditions in advance to avoid unexpected costs.
Can the Customs Fee Be Refunded?
The Cyprus Customs Department has also clarified the refund procedure. Simply returning a product to the seller does not automatically entitle the buyer to a refund of the customs fee. Reimbursement is only possible if the item is defective or does not comply with the terms of the sales contract. In such cases, the customer must submit a justified application, which will be reviewed by the customs authorities.
VAT refunds, meanwhile, depend entirely on the policies of the individual seller or online marketplace. There is no single refund mechanism that applies to all retailers.
Experts advise shoppers in Cyprus to carefully review information about the seller before placing an order. Particular attention should be paid to the company's registered location and the country from which the goods are actually shipped. Many international marketplaces operate warehouses within the European Union, and purchases dispatched from these locations may be subject to different rules.
Customers are also encouraged to check whether the new customs fee is already included in the final purchase price before completing payment. Otherwise, additional charges may arise during delivery. It is equally important to review the retailer's return policy in advance, as this will determine whether VAT and other charges may be refunded.
How Will the Changes Affect Online Shopping?
According to experts, the new rules could significantly change shopping habits in Cyprus. Whereas it was previously cost-effective to combine many different low-cost items into a single parcel, this strategy may now become less economical because of the €3 charge for each product category. As a result, more consumers are expected to favour sellers that ship from warehouses located within the European Union, allowing them to avoid additional customs procedures and simplify delivery.
Despite the new charges, online shopping is expected to remain popular among Cyprus residents thanks to its wide product selection and competitive prices. However, shoppers will now need to consider not only the price of the goods and shipping costs but also the new customs fees, which could have a significant impact on the final cost of an order.