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Written question asked by Joshua Reynolds (Liberal Democrat) on Tuesday, 19 May 2026, in the House of Commons. It was due for an answer on Thursday, 21 May 2026. It was answered by Dan Tomlinson (Labour) on Thursday, 28 May 2026 on behalf of the Treasury.

Parcels: Fees and Charges

Question

To ask the Chancellor of the Exchequer, what assessment her Department has made of the impact of the cumulative costs of VAT and associated handling fees applied to parcels sent from distribution centres in Great Britain to customers in the European Union on UK consumers; and whether she is taking steps to reduce those costs.

Answer

VAT is a broad-based tax on consumption and is normally due in the country where the consumer of the goods or services is located. The application of this destination principle in VAT achieves neutrality in international trade. The VAT rate applied is a matter for the jurisdiction in question.

We note the introduction of a handling fee on small parcels into the EU is still under discussion. Any VAT and handling fee would be applied on import to the EU, this wouldn't be a cost directly borne by UK consumers.

Secondary information

Type
Written question
Reference
2997
Session
2026-27
Subjects
Consumers Costs EU countries Fees and charges Parcels VAT
Link
View this Written question on www.parliament.uk