If you've been selling products to customers in the EU since Brexit, there's a good chance you've had at least one of these conversations. A customer emails to say they've returned a parcel. Or leaves a one-star review about unexpected fees they weren't told about. Or simply never received their order because they refused it at the door.

This is now one of the most common complaints UK sellers face when selling into Europe — and it almost always comes down to the same cause: unexpected customs charges arriving with the parcel.

Why customers refuse deliveries

When a parcel arrives from outside the EU, customs authorities in the destination country assess it and may charge import duty and VAT before releasing it to the customer. The courier then tries to collect these charges before handing over the parcel.

For your customer, this comes as a complete surprise. They bought a product from you, paid what they thought was the full amount including postage, and then a courier turns up demanding another £15, £30, or even more before handing over the box.

Many customers simply refuse. They don't want to pay extra fees they weren't warned about, and they feel — rightly — that they weren't given the full picture when they bought.

Others accept delivery but then dispute the charge with their bank or raise a PayPal claim, arguing that the total cost was misrepresented at checkout.

This is entirely preventable

The reason this happens is that most UK sellers still price their products and shipping for a domestic market. They quote the product price plus the courier charge, and send the parcel on its way.

But since Brexit, the UK is a third country in EU customs law. Every parcel you send into the EU is an international import, subject to import duty and import VAT. The amounts depend on:

  • The value of the goods
  • The type of product (its commodity code)
  • The destination country
  • Whether a 0% duty rate applies under the UK-EU Trade and Cooperation Agreement

Many products attract 0% import duty under the Trade and Cooperation Agreement — this is genuinely good news that many sellers don't know about. But even with 0% duty, VAT is almost always charged. France charges 20%, Germany 19%, Spain 21%, Italy 22%. These are substantial amounts on top of the price your customer already paid.

How to fix it: four practical steps

1. Calculate the full landed cost before you sell. Before you list a product for sale to EU customers, work out what the total cost will be — including duty and VAT. Use a landed cost calculator to do this in seconds. This tells you what your customer will actually pay in total, not just what they pay you.

2. Be transparent about additional charges. If you're shipping DAP (Delivered at Place) — meaning the customer is responsible for paying customs charges on arrival — say so clearly at the point of purchase. Don't bury it in the terms and conditions. A brief note at checkout makes a huge difference.

3. Consider shipping DDP. DDP stands for Delivered Duty Paid. Under DDP terms, you as the seller pay the import duty and VAT upfront, and build the cost into your selling price. The customer pays nothing extra on delivery. This eliminates the surprise entirely and significantly reduces refusals and complaints.

4. Update your product pages and checkout. Add a note explaining that international orders may be subject to customs charges on arrival, or — if you're shipping DDP — make clear that all taxes are already included in the price. Most large retailers already do this as standard.

The business case for fixing this

Refused deliveries are expensive. You typically lose the outbound shipping cost, the return shipping cost, and sometimes the product itself if it's damaged in transit. A single refusal on a £40 order could easily cost you £20–25 in lost margin.

More importantly, customers who get a nasty surprise at the door don't come back — and many leave reviews that warn other potential customers. EU expansion is one of the best growth opportunities available to UK small businesses right now, but only if the buying experience is good.

Taking 10 minutes to understand your landed costs and update your listings could eliminate this problem entirely, protecting every EU order you send from this point forward.