If the goods, including shipping and possible insurance, costs less than DKK 300, you do not have to pay any duties or VAT. However, the DKK 300 limit does not apply to delicacies, baking, dairy products and fireworks. Read more about these items under Excise tax.

Goods that cost more than DKK 300, including shipping costs and possible insurance, must be taxed.

Customs duty
Goods produced in a country that the Faroe Islands have a free trade agreement with are exempt from customs duty. Goods produced in a country that the Faroes does not have a free trade agreement with, such as China or the USA, must always pay customs duty. In the Faroes, customs duty is sometimes referred to as GATT-toll.

Excise tax
An excise tax is levied on certain goods, such as delicacies and fireworks. The percentage rate of the excise tax varies according to the type of good. For example, delicacies are levied a 40% excise tax + DKK 16 per kilogram, and fireworks are levied a 100% excise tax + DKK 0 per kilogram.

Value added tax (VAT)
When the value of the order is more than DKK 300, you always have to pay VAT, in Faroese MVG. The VAT rate is 25%. Some books and brochures are exempt (see chapter 49 of the Customs Tariff list).

If the goods have been levied customs duty and excise tax, this is included when calculating the VAT.

Service charge
TAKS charges a service fee for clearing customs. The fee is DKK 30 per parcel. If the customs are cleared by a shipping agent, a service fee may also be payable to them.

The invoice must be enclosed
When you order goods from abroad, TAKS must be able to see the invoice in order to clear the goods through customs. A Commercial invoice is not accepted. You must get the store where you ordered the goods to provide the right invoice. TAKS will hold the goods until then.

Clearing the customs yourself
If the dutiable value of the good exceeds DKK 3,000, you must fill out a customs form and submit it to TAKS. Find the customs form under quick links. If the dutiable value is DKK 3,000 or less, you can speed up the clearance by paying a fixed duty of 10%. This may be useful if it is urgent to get the goods cleared.

Some goods are subject to restrictions, which means that private individuals need a special permit to import them. If you order any restricted items without the necessary permits, TAKS will hold the parcel until the relevant authority has decided what happens to it.

Weapons and fireworks
It is illegal to import weapons and fireworks without a permit issued by the police. Without a permit, weapons and fireworks are always withheld by customs. The police will then decide whether the item can be released or it must be destroyed.

You must be aged 18 or over to import weapons and fireworks.

Live animals
It is illegal to import live animals without a permit issued by the Faroese Food and Veterinary Authority (Heilsufrøðiliga Starvsstovan). Without a permit, live animals are always withheld by customs. The food and veterinary authority will then decide whether the animal can be released or not. If the animal cannot be released, it is usually returned to the sender. Eggs that can hatch are also considered as live animals.

Private individuals are always prohibited from importing certain goods. A parcel containing a banned item will always be destroyed by customs.

Alcohol
In the Faroes, the only authorised importer of alcohol is the Alcohol Monopoly of the Faroe Islands (Rúsdrekkasøla Landsins). If you buy alcohol from abroad online, or if someone sends you alcohol as a present, it will be stopped by customs and destroyed. You will be notified by TAKS.

Tobacco
Private individuals are prohibited from importing tobacco bought online from abroad or receiving it as a present from someone abroad. It will be stopped by customs and destroyed. You will be notified by TAKS.

Tobacco includes snuff, cigarettes, cigars, smoking tobacco and waterpipe tobacco (fruit tobacco).

Medicine
In the Faroes, the only authorised importer of medicine is the Faroese Pharmacy Service (Apoteksverkið). When customs officers come across goods that look like medicine, they send for the pharmacy service who will then decide if it is medicine. If it is medicine, it will be released to the police, who will then contact the recipient and settle the matter. TAKS will always notify the recipient first.

Naturopathic medicine and dietary supplements are usually not considered medicine. If there is a matter of doubt, the parcel will be held by customs until the pharmacy service can confirm that it is not medicine.

Liquid for electronic cigarettes, that contains nicotine, is considered a medicine and may only be imported by the Pharmacy Service.

Food
You may import food, and food will generally not be held by customs. In a matter of doubt, the Food and Veterinary Authority (Heilsufrøðiliga Starvsstovan) will decide whether the parcel can be released or it should be destroyed.

Soil and plants
You may import soil and plants, and it will generally not be held by customs.

When you buy goods from abroad online that have a value of DKK 300 or less, including shipping and possible insurance, you are exempt from paying any additional fees such as duty and VAT.

However, the DKK 300 limit does not apply to delicacies, baking, dairy products, soft drinks, oil and cigarette paper. 

Example of clothes
Below are two examples of a pair of trousers bought online on eBay. One pair of trousers are made in China and the other in Germany. As you can see from example 1, it makes no difference where the trousers are made, as long as the dutiable value is under DKK 300.

In the second example, the dutiable value exceeds DKK 300. Here we see that the trousers made in China, which the Faroes do not have a free trade agreement with, are levied a customs duty. The trousers made in Germany, which the Faroes have a free trade agreement with, are exempt from customs duty.

*) Sometimes the shipping agent also charges a service fee.

Example of delicacies
Below is another example of an online purchase from eBay. This time the purchase is 1 kilogram of dark chocolate, made in China and Germany. The DKK 300 limit does not apply to delicacies such as chocolate and an excise tax is levied. Furthermore, a 20% customs duty is levied on the purchase from China.

*) Sometimes the shipping agent also charges a service fee.

Don't forget
If your parcel comes from a country that the Faroes has a free trade agreement with and you want to avoid paying the customs duty, make sure that the country of origin is stated on the invoice.