Doesn’t work a thing, for paypal, there are differences between regular payment and sending a gift. Gift has no protection IMHO, may save you some fees but only if you have it linked to an account or something or charged with money. Not if you use a debit/credit card for paypal.
That’s been my observations from the net in the past.
Sending anything as a gift is useless to EU, what matters is the price of the package, and if the customs/post office does not like the declared value they give it to customs anyway or so, depends how douche your post is.
There may be some ways how to send things for review or when returning goods etc. as to avoid getting charged by the customs but usually you will have to deal with customs in such a case or search how to do that.
DX sent me a package as a gift, value is ripped off the package but the total says 4.19, if that’s HKD or USD who knows but the original price was 29.50 USD and it missed the customs, it’s just on the limit to go to customs. But some Chinese sellers declare lower value of the package. Only some, usually the less reputable ones.
Dunno if the gift mark on the declaration of the package has any meaning with the US post or customs.
In EU it does not matter.
Most my packages are marked as Gift when coming from China/HK, only maybe a couple with electronics were marked as Other.
Only one package I got from US here was marked as Merchandise.
Asia package, Gift marked, value over $70, went to customs, marking it as a Gift does not free you from taxes and customs in EU.
22 EUR to not deal with customs at all.
22 - 150 EUR pay only tax. (And the f*ing post for doing their job when you already payed for shipping!)
150 EUR and more means paying some customs duty as well. (And the f*ing post for doing their job when you already payed for shipping!)