EU landed cost & €3 duty calculator
From 1 July 2026 the EU charges a flat €3 import duty on low-value goods shipped from outside the bloc. This works out what a product really costs to land in the EU - goods, shipping, the €3 duty and VAT - so you can see your true margin and why sourcing from an EU warehouse is often cheaper.
Find products that already have EU-stock sources flagged in SpotPeaks, so you skip the duty automatically.
What the €3 import duty is
From 1 July 2026, goods shipped from outside the EU directly to an EU customer carry a flat €3 customs duty per item type on consignments under €150. It’s separate from VAT, and it’s a real hit to thin-margin dropshipping: on a €12 product sourced from China, €3 of new duty can be the difference between a profitable test and a losing one. Goods above €150 follow normal customs rules instead.
Why EU-warehouse stock avoids it
The duty applies to goods crossing into the EU from outside. A product already stocked in an EU warehouse (Germany, Spain, Poland, the Netherlands and others) ships inside the bloc, so it’s exempt from the €3 duty - and it reaches the customer in days instead of weeks. EU stock usually costs a little more per unit, but once you add the duty and the refund risk of three-week shipping, the EU option is frequently the better economics. That’s exactly why SpotPeaks flags which products have an EU-stock source.
How VAT fits in
VAT is charged on the value of the goods at the destination country’s rate, but for most B2C dropshipping it’s collected from the customer at checkout via the IOSS scheme, or it’s reclaimable for VAT-registered sellers. So while VAT inflates the headline landed figure, your real cost basis is usually the ex-VAT number - which is why the calculator shows both.
How to use the result
- Compare origins. Toggle “outside EU” vs “EU warehouse” to see the duty disappear.
- Work from the ex-VAT cost. That’s the number to price against for a real margin.
- Add your selling price to see profit per unit before ad spend - then pressure-test it with the breakeven ROAS calculator.
This is a planning estimate, not tax advice. Exact duty, VAT and IOSS treatment depend on the product, value and your VAT registration - confirm specifics for your situation.
FAQ
What is landed cost?
The true all-in cost of getting one unit into your customer's country: product cost + shipping + customs duty (the EU's flat €3 for low-value imports since July 2026) + VAT where it's a real cost to you. It's the number every margin calculation must start from.
How is the EU €3 duty calculated?
It's a flat €3 per tariff classification (distinct product type) in a shipment, not per parcel or per unit - and VAT is then calculated on the value including the duty, so the effective hit is slightly more than €3.
Do I pay the €3 duty on EU-warehouse stock?
No - the duty only applies to goods entering the EU from outside. Products shipped from stock already inside the EU skip it entirely, which is why EU stock is often the better economics despite a higher unit price.
Should my prices include VAT for EU customers?
Yes - EU price-display rules require consumer prices to be final, VAT included. Collect it at checkout via IOSS so parcels clear customs without your customer being ambushed by the courier for tax plus a handling fee.
Find products with EU stock already flagged
SpotPeaks checks which winning products have an EU-warehouse source, so you can skip the duty and ship fast.
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