The European Union is changing how low-value e-commerce imports are handled. From 1 July 2026, a fixed €3 customs duty will apply to parcels worth less than €150, following the Council of the European Union's decision on 12 December 2025.
This new fee adds cost but brings greater clarity and predictability, further supporting the Import One-Stop Shop (IOSS) as the main route for cross-border e-commerce in the EU.
This article outlines the changes, their impact, and how merchants can prepare.
Please note: The EU has not yet finalised how this duty will work in practice, and the details below are our current understanding and subject to change. For the latest position, see our dedicated article The €3 EU Customs Duty from 1 July 2026: What We Know So Far.
Why Is the EU Introducing a €3 Duty?
Until now, goods imported into the EU with a value under €150 benefited from a customs duty exemption. This system has increasingly led to:
- Competitive distortions between EU and non-EU sellers
- Undervaluation and customs fraud
- Heavy administrative pressure on customs authorities
The new €3 duty closes this loophole while preserving fast, digital customs clearance through IOSS.
IOSS: The "Green Lane" for Low-Value Imports
From 1 July 2026, a €3 customs duty applies to parcels worth less than €150. Based on the latest European Commission guidance, the duty is collected by the carrier, which pays it to customs and then invoices you for it. It is not collected through IOSS. IOSS continues to handle import VAT at checkout exactly as before, keeping your parcels in the customs "green lane" for fast clearance.
Using IOSS
- You collect import VAT at checkout, exactly as you do today.
- Parcels clear customs automatically.
- Customers pay nothing extra on delivery and avoid carrier handling fees.
- The €3 duty is invoiced to you by the carrier; you can recover it from customers at checkout (WooCommerce via the EAS app; Shopify via its upcoming solution or by adjusting your prices).
Not Using IOSS
- Parcels face delays and increased checks at customs.
- Customers pay carrier handling fees on delivery, often much more than €3.
- Delivery becomes less predictable and more expensive for customers.
93% of e-commerce parcels will be affected. With this reform, IOSS becomes the standard route for e-commerce imports into the EU.
A Bridge to the 2028 Full Customs Reform
The €3 duty is only a temporary measure.
From March 2028, the EU will:
- Remove the €150 customs duty exemption
- Charge customs duties and VAT on all imports, regardless of value
The Deemed Importer model will then be essential, requiring marketplaces and major cross-border sellers to handle VAT and customs through IOSS or similar systems.
Key point:
Merchants already using IOSS will be ready. Delaying only puts off necessary compliance.
Simplified "Duty Buckets" from 2028
The 2028 reform introduces a simplified Duty Bucket system for B2C imports.
Products will be grouped into a few duty categories:
- 0%
- 5%
- 8%
- 12%
- 17%
What This Means for You
- No need for complex commodity codes
- Easier, automated duty calculation at checkout
- Clear landed prices for customers
- Easy IOSS integration
Stronger Fraud Prevention & IOSS Security
The reform is mainly driven by the increasing misuse of IOSS numbers, with fraudulent sellers using valid numbers to avoid taxes.
Under the VAT in the Digital Age (ViDA) initiative, the EU will implement:
- Verification of IOSS numbers for each shipment
- Stricter links between sellers, parcels, and declarations
- Better protection for compliant sellers
Your IOSS number will act as a secure digital key, enabling trusted sellers to enjoy quicker customs clearance and less risk.
What This Means for Merchants
The era of loosely regulated, duty-free imports is ending, replaced by a streamlined digital system.
Key Impacts
- IOSS is now the standard for EU e-commerce imports.
- The €3 duty allows for accurate landed-cost pricing.
- Duty and VAT are now clear and predictable.
- No more unexpected delivery charges for customers.
What to Do Now
- Check your IOSS registration.
- Please ensure that your products have the correct HS code assigned to them. For locating the appropriate HS codes, we recommend utilising our Tariff Finder.
- Decide how you'll handle the €3 at checkout: collect it via the EAS app on WooCommerce, Shopify's upcoming solution, or by adjusting your prices.
- Get systems and pricing ready for 1 July 2026.
In Summary
- A €3 customs duty applies to e-commerce parcels under €150 from 1 July 2026
- The €3 duty is collected by the carrier and invoiced to the merchant, while IOSS continues to handle import VAT
- Full customs reform follows in 2028
- Early IOSS adoption means faster clearance, lower risk, and better customer experience
If you have questions about IOSS registration, checkout configuration, or compliance readiness, our team is here to help.
Email us:
support@easproject.com
Link to blog:
easproject.com/eu-customs-vat-overhaul