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.
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 the New €3 Duty
From 1 July 2026, the €3 customs duty will be collected via the IOSS system.
Using IOSS
You collect €3 customs duty plus VAT at checkout.
Parcels clear customs automatically.
Customers pay nothing on delivery.
Shipments go through customs quickly and easily.
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. By including the new duty in IOSS, the EU is making IOSS the standard for e-commerce imports.
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.
Update your checkout for fixed customs duty.
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 duty is designed to work through IOSS
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@eaproject.com
Link to blog:
easproject.com/eu-customs-vat-overhaul