Germany is the UK's largest EU export market. Millions of parcels make the journey every year — from handmade goods and clothing to electronics and homeware. If you're a UK small business shipping to German customers, here's exactly what they'll be asked to pay when your parcel arrives.
The basics: what's changed since Brexit
Before January 2021, shipping from the UK to Germany was as straightforward as shipping domestically. No customs forms, no import charges, no surprises. Brexit changed all of that.
The UK is now a third country from Germany's perspective. Every parcel you send crosses an international customs border. That means customs declarations, potential import duty, and German VAT — all assessed on arrival unless you've arranged to handle them upfront.
Germany's VAT rate
Germany's standard VAT rate is 19%. This is applied to the total value of your shipment — product value plus shipping cost plus any import duty — when your parcel clears German customs.
For a £200 product with £12 shipping and 0% duty, your German customer faces a VAT bill of around £40 on delivery. That's on top of what they've already paid you.
Import duty: the good news
Under the UK-EU Trade and Cooperation Agreement (TCA), many standard goods exported from the UK to Germany attract 0% import duty — provided the goods meet the rules of origin requirements, meaning they were substantially made in the UK.
Common small business products that typically attract 0% duty include handmade goods, ceramics, candles, art, jewellery, and most clothing. If your products are genuinely UK-made, duty is often not an issue.
Some product categories do attract duty — certain textiles, footwear, and processed foods can attract rates of 3–12%. If you're unsure about your product's duty rate, use the UK Government's Trade Tariff tool or run a calculation through ClearShip, which applies the correct duty rate automatically.
The €150 threshold
For shipments under €150 in value, German VAT is typically collected at the point of sale — either by your platform (Etsy handles this automatically) or through the EU's IOSS scheme if you're registered. Your customer pays nothing extra on delivery.
For shipments above €150 — roughly £130 — VAT and potentially duty are assessed on arrival. This is where most UK sellers run into problems.
A real example
A UK ceramics seller ships a set of handmade bowls worth £180 to a customer in Munich.
Worked example — ceramics to Germany
Product value: £180
Shipping: £14
Import duty: £0 (0% under UK-EU TCA for ceramics)
German VAT (19%): £37
Customs handling fee: ~£8
Total additional cost to the customer on delivery: ~£45
The customer paid £180 plus postage at checkout. They're now asked for another £45 before they can take delivery. If they weren't warned, this is the moment they consider refusing.
What you can do
Know the landed cost before you ship. ClearShip calculates the full landed cost for UK-to-Germany shipments in seconds — enter your product description, value, weight and destination, and you'll see exactly what your German customer will pay, broken down line by line.
Once you know the number, tell your customers. A simple note on your listing or product page — "German customers: import VAT of approximately 19% may be charged on delivery for orders over €150" — sets expectations and prevents refused deliveries.
For high-volume Germany shipping, consider DDP (Delivered Duty Paid) — where you cover the charges upfront and build them into your price. It gives German customers a seamless local shopping experience and eliminates delivery refusals entirely.