From 1 July 2026, the EU introduces a fixed €3 customs duty on goods imported in consignments valued under €150. For the full background, including why it's being introduced and how it links to the 2028 customs reform, see our companion article, EU Customs & VAT Overhaul: Small-Parcel Duty 2026. This article focuses on the practical questions merchants are asking us right now, and what you can do to prepare.
Why IOSS is still worth using
Even with the new €3 duty, IOSS remains the most cost-effective and reliable way to ship low-value goods into the EU. Using it means:
- Faster customs clearance. IOSS parcels go through the customs "green lane" and clear automatically, with fewer checks and delays.
- No surprises for your customers. VAT is collected once at checkout, so customers pay nothing extra on delivery and avoid carrier handling fees, which are often very high for VATs.
- Predictable landed costs. Clear, upfront pricing means fewer abandoned carts and fewer rejected or returned parcels.
- Ready for what's next. IOSS users are already set up for the 2028 customs reform, when the €150 exemption is removed and duties will be handled via IOSS, making the scheme obligatory for any serious business.
Who collects the €3 duty?
The carrier collects and remits to customs the €3 duty. They will then invoice you for it instead of attempting to collect from end-customer - there is great confusion with this currently, among couriers and posts. The duty is not collected and remitted by IOSS Intermediary. IOSS continues to handle import VAT exactly as it does today; the €3 duty moves alongside it.
How to recover the €3 from your customers
Because the carrier will invoice you for the duty, you will want to collect the €3 from the customer at checkout so you aren't left out of pocket. How you do that depends on your platform:
- WooCommerce: The EAS app can be used to calculate and collect the duty at checkout.
- Shopify: Shopify now calculates the €3 at checkout through its duties and import taxes feature (applied automatically if you already use duties). This doesn't change your IOSS setup or move you onto DDP. One side effect to note: enabling the duty calculation removes the €150 VAT ceiling, so Shopify then calculates EU VAT on all orders, including those above €150.
How the €3 is calculated
The duty is charged per customs HS code, not per parcel, and not per individual product. Goods count as a single item when they share the same:
- 6-digit HS tariff code with H7 declaration, 8-digits with H1 declaration
- customs product description
- country of origin if using H1 and possible to have a preferential treatment
One parcel can contain several products but still be charged a single €3 if they share those attributes. Accurate, consistent product data keeps your charges predictable. At least some EU customs apply duty calculation wrong and apply it per line regardless of number of HS codes. Make sure you have the same HS codes in one line in your shipping software.
Preferential treatment may also apply. The €3 duty cannot be avoided, despite qualifying for favourable EU trade-agreement rules, despite on their origin and classification. This seems to be EU customs' interpretation of the regulation, which might change in the future. Whether this happens in practice also depends on your carrier, if they are willing and able to provide the additional documents to customs at destination. Please check with your courier if they can handle H1.
Note: EAS will have a shipping solution in place to handle shipments with preferential treatment. EAS solution is a replication of our Swiss Post DDP solution, usable for merchants from other countries. A notable benefit of using EAS solution, VATs are not lost on returned items or shipments.
What to do now
- Make sure your HS codes, short product descriptions and country-of-origin data are accurate and consistent. Our Tariff Finder can help with minimising the number of HS codes.
- Decide how you'll handle the €3: collect it at checkout (WooCommerce via the EAS app; Shopify via its duties and import taxes feature), absorb it, or, increase your prices to maintain margins.
- Watch our webinar to get up to speed: https://zoom.us/clips/share/9Hh_vNx3RO68wZhgbBeR7A
- Keep an eye on our newsletters. We'll share confirmed details as soon as the EU and our partners lock them in.
Questions? Email support@easproject.com or schedule a meeting with EAS.