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Ordering from outside the EU can mean VAT, customs duties and handling fees. Here is how parcels are taxed in Luxembourg and how to avoid surprises.
Online shopping is second nature in Luxembourg, where many residents order from Amazon, Zalando and countless smaller shops. Within the EU, goods circulate freely and prices include VAT. Order from the United Kingdom, the United States, China or any other non-EU country, however, and your parcel goes through customs. Understanding the rules saves money and frustration.
Since the EU reform of July 2021, there is no VAT exemption for low-value parcels: Luxembourg VAT is due from the first euro on goods bought outside the EU. Many large platforms charge it at checkout through the IOSS system, so nothing more is due on delivery. Customs duties are added on top only when the intrinsic value of the goods exceeds 150 euros, at rates that depend on the product category. Postal operators and couriers may also charge a handling fee for presenting the parcel to customs.
| Situation | VAT | Customs duties |
|---|---|---|
| Purchase within the EU | Included in the price | None |
| Non-EU purchase, any value | Due from the first euro | Only above 150 euros of goods value |
| Gift between private individuals (non-EU) | Exempt up to 45 euros | Exempt up to 45 euros |
Post Luxembourg and private couriers deliver to your door, to parcel lockers and to pickup points across the country; many employers also accept private parcels at reception. If a parcel is held at customs, the carrier will usually contact you to request an invoice or payment — respond quickly, because unclaimed parcels are returned or destroyed after the storage period. Beware of one common trap: a website with a .lu or .fr address is no guarantee that the goods ship from inside the EU. Marketplace sellers often dispatch from Asia or the UK, which triggers the import rules described above. When in doubt, check the seller's shipping location before ordering, or choose an EU-based seller to keep the price final.
