7 things you need to know before shopping from a foreign webshop

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Shopping from online stores outside the EU has never been easier. The goods are cheaper, the products are unique and the selection is wider. But it can quickly turn into an expensive and hassle-filled experience. Customs, VAT and lack of consumer protection rights can lead to unforeseen costs and hassle. When you know the rules for buying from foreign webshops, you can quickly assess whether it is worthwhile to buy from webshops in the US, China or the UK.

You can find out if the webshop is located outside the EU by looking up its physical address. You can often find it at the bottom of the website, under 'About us' or in the Terms and Conditions. If the address is not provided, it may be a sign that the webshop is located outside the EU.

Please note that countries located in Europe may still be outside the EU. This applies to Norway and the UK, for example.

In this article, we provide you with an overview of what you need to be aware of when shopping from a foreign webshop. However, it is still important that you keep yourself updated on customs regulations and your consumer rights, as changes are often made in this area.

1. You have to pay customs, VAT and transportation fees

When you shop within the EU, you don't have to pay customs duties and VAT. However, you do when you buy goods from outside the EU.

You must pay Danish VAT on all goods you buy from outside the EU. This means that you always have to add 25% on top of the total price of your goods, any customs duties and other taxes. Generally, you pay the VAT when your goods arrive in Denmark. You can also pay directly to the webshop if it is registered for a scheme for goods under 150 euros. This means that you pay Danish VAT on the purchase, but not import VAT. Therefore, the shipment will be delivered directly to you.

Customs duty depends on the type and price of your goods. If the total price of the goods in the same parcel is less than 150 euros before VAT, equivalent to 1,150 DKK excluding shipping, you don't have to pay customs duty. When the value of the parcel exceeds 150 euros, you will have to pay customs duty for both your goods and the shipping price. The duty rate depends on the type of goods. For example, you'll pay approximately 12% customs duty when buying clothes made of textile, fabric or knitwear..

Example of calculation of customs duty and VAT

For example, if you buy clothes made of textile, fabric or knitwear for 1,150 DKK with a shipping price of 60 DKK, you will pay 0 DKK in customs duty, but 302.5 DKK in VAT. This gives a total price of 1,512.5 DKK. If you buy for 1,151 DKK, customs duty of 12% (145 DKK) will be charged. This gives an amount of 1,356.32 DKK, of which you must pay 25% (339 DKK) VAT. This gives a total price of 1695.4 DKK. A price difference of 1 DKK in the price of the goods can thus ultimately mean that you have to pay 183 DKK more to get the goods to Denmark.

On the Danish Customs Agency's website, you can easily calculate the expected price of your goods after VAT and customs duties: Customs calculator

However, if you buy wine, beer, spirits, tobacco products, perfume and eau de toilette, you always have to pay customs duty regardless of the price of the product. You will also have to pay excise duty on alcoholic beverages, among other things.

In addition to customs duty and VAT, you should expect to pay a transportation fee to the parcel distributor, regardless of the price of your goods. The fee covers the parcel distributor's outlay for VAT, taxes and any customs duties. The transportation fee is between 150-250 kr. and is added to the total price. Your parcel distributor will contact you for more details on how to pay customs duties, VAT and taxes.

You can avoid paying transport fees if the webshop has joined the special scheme for items costing less than 150 euro.*

2. Your rights vary

You have a 14-day right of withdrawal when you shop from webshops within the EU. However, when you buy from a webshop outside the EU, you can only cancel the purchase in agreement with the seller.

There are also differences in the right of complaint. The two-year warranty in the EU does not apply when you buy from a webshop outside the EU. It is therefore a good idea to read about your rights in the event of defects under the terms and conditions before placing an order.

3. If the webshop markets itself in Denmark, you have Danish rights

If the webshop targets Danish consumers by marketing itself in Denmark, Danish consumer protection rights protect you. Danish language, payment in Danish kroner, delivery to Denmark and a URL ending in .dk can be signs that you have Danish rights. This includes a two-year warranty, a 14-day right of withdrawal and the right to complain in Denmark.

However, it can be a difficult process to fulfill your claim, so be careful, even if the webshop markets itself in Denmark.

4. Returns can be more difficult

Before you make a purchase, it's a good idea to check the webshop's return policy. When shopping from an online store outside the EU, the return process can be more complicated and costly. Make sure you understand the conditions for returns, including any costs and deadlines.

If you return the goods, you can apply for a refund of customs duties and VAT: Apply for a refund of customs duties and VAT

5. You are in the best position when you pay with a payment card

It is important that you use a payment card, as this allows your bank to refund the money if you never receive the goods. As soon as you are in a situation where you need a refund, you should contact your bank. However, it is a requirement that you first try to contact the webshop to get the goods delivered or get a refund.

6. Learn from other people's experiences with the webshop on Trustpilot

The quality of foreign webshops may differ from what we know from Danish webshops. Take advantage of other people's experiences with the webshop by reading reviews on Trustpilot . Sort by recent reviews to get a true impression of the webshop's reliability, product quality and customer service. Pay extra attention to reviews from customers in Denmark.

7. Familiarize yourself with delivery times and shipping costs

Shipments from abroad may have longer delivery times than shipments from domestic webshops. Be patient and expect delivery times to vary depending on the shipping method you choose and the country of shipment. Also remember to check the shipping costs, as these can vary significantly between different webshops.

References


*Toldstyrelsen (n.d.) Internethandel uden for EU. https://toldst.dk/borger/internethandel/internethandel-uden-for-eu

FAQ

What extra costs should I expect when buying from a foreign webshop?

In addition to the price of the goods, you should expect to pay customs duties, VAT and a transportation fee when buying from a foreign webshop. Customs duty depends on the type and price of the goods, while VAT is always 25%. The transportation fee covers the parcel distributor's costs for VAT, taxes and any customs duties.

When shopping outside the EU, you can buy up to 150 euros (approx. 1150 kr. excluding shipping) before you have to pay customs duty. If the value of your goods exceeds this limit, you should expect to pay customs duty on both the goods and the shipping. On top of that, you'll pay 25% VAT, which you'll pay regardless of the value of your goods.

Yes, you must pay Danish VAT on all goods you buy from outside the EU. This means that you must always add 25% to the total price of your goods, as well as any customs duties and other taxes.

Your rights may vary depending on the seller's location and conditions. In general, you do not have the same consumer protection as when buying within the EU, but if the merchant is marketing in Denmark, Danish consumer protection rights may apply, including warranties, right of withdrawal and right of complaint. It is important to read and understand the terms and conditions before making a purchase.

When you use a payment card, you get extra protection, such as the possibility of a chargeback if the goods are not delivered. However, always try to resolve the issue with the seller first.