Hidden Costs of Online Shopping: What Cypriot Shoppers Must Know
Consumer Protection Service clarifies taxes, customs, and legal pitfalls for non-EU online purchases
The Consumer Protection Service informs consumers about the rules governing online shopping, particularly in view of the rising number of purchases from non-EU countries such as China, the United Kingdom, the USA, and others.
Specifically, according to a related announcement, shipments valued up to €150 are exempt from import duties. However, excise taxes may apply (for example, on crystal items, porcelain decorations, alcoholic beverages, etc.). These shipments are also subject to Value Added Tax (VAT), with a standard rate of 19% or a reduced rate depending on the product (e.g., books are taxed at 5%). VAT may have already been paid at the time of purchase through the Import One-Stop Shop (IOSS) system, or it might be requested upon delivery by the courier or Customs.
For shipments valued over €150, import duties apply according to the product classification, while excise tax may also be imposed (on items such as crystal, porcelain ornaments, alcoholic drinks, etc.). These are likewise subject to VAT (19% standard rate or reduced, such as 5% for books). A complete customs declaration is required, usually via a customs broker or carrier, for payment of these customs and tax charges.
Parcels containing gifts sent from a private individual outside the EU to a private individual in Cyprus are exempt from taxes only if their value does not exceed €45, are not intended for commercial use, and are declared as gifts at the time of shipment.
It should be noted that certain products, regardless of their value or intended use (personal, gift, etc.), may be subject to restrictions. To permit their import, they must comply with EU requirements.
These restrictions may involve securing licenses, certificates, or approvals from the competent authority and declaring them in the customs import declaration. The customs declaration is typically completed via a customs broker or carrier. For example, plants require a phytosanitary certificate and approval from the Department of Agriculture; dietary supplements beyond quantities for personal use need a permit from the Health Services; and medical devices require a license from the Medical Devices Authority.
Another restriction is the requirement for the CE marking on certain products, whereby the manufacturer confirms compliance with European health, safety, and environmental protection standards. Examples include electronic devices, toys, and electrical appliances.
It is also highlighted that online purchases and shipments of prohibited items are banned, such as tobacco products, nicotine-containing e-cigarettes, weapons, counterfeit goods violating intellectual property rights, and pharmaceutical preparations (including homeopathic products).
Furthermore, the EU has imposed various import bans on products originating from or exported to Russia or Belarus, as sanctions for the invasion of Ukraine. Consumers are therefore urged to conduct thorough research before placing orders linked to these countries.
It is noted that the value on which customs charges are calculated is the CIF (Cost, Insurance, Freight) value, which includes the objective product value plus shipping fees and other costs related to delivery to Cyprus.
Courier companies or postal services may charge customs clearance fees and handling charges.
It is clarified that these fees are not collected by the Customs Department or the Tax Department, but are determined by the courier companies or postal services themselves.
Consumers are advised to ensure that the shopping platform charges VAT at the time of ordering and to request proof of VAT payment. If buying from private sellers or small shops, they should expect additional customs procedures. Moreover, they should verify that the product is not subject to any prohibitions.
Certain categories of goods, no matter their purpose or price, must meet strict EU customs restrictions and certifications. Products like electronics, plants, medical devices, and dietary supplements may require certificates, licenses, or approvals before they can enter Cyprus legally.