What changes on 1 July 2026?
From 1 July 2026, goods imported into the EU in consignments valued at up to €150 will be subject to a fixed €3 customs duty. In practice, this marks a material shift for low-value imports, including typical e-commerce consumer goods, where customs cost was previously often avoided.
Key point: Low-value parcels (≤ €150) will no longer be treated as effectively “duty-free”. A €3 transitional duty applies from 1 July 2026, primarily targeting IOSS e-commerce flows.
Why is the EU introducing this duty?
The measure addresses unfair competition for EU sellers, systematic undervaluation and fraud, consumer safety concerns, and environmental impacts driven by shipment splitting and high parcel volumes.
What is IOSS (Import One-Stop Shop)?
IOSS is the EU’s special VAT scheme for distance sales of imported goods. It enables non-EU sellers (and platforms/intermediaries) to:
- collect VAT at the point of sale (checkout),
- simplify VAT reporting through a single registration,
- reduce delivery-stage surprises for consumers.
Important update: From 1 July 2026, IOSS shipments are not exempt from customs duty. For parcels ≤ €150 linked to IOSS-registered sellers, the fixed €3 duty will apply.
What should businesses do now?
- Update pricing and margin models to reflect the €3 duty and downstream cost allocation.
- Review shipment structures and whether splitting practices still make commercial sense.
- Strengthen product data governance (classification, valuation, audit trail).
- Monitor the 2026–2028 transition as the broader Data Hub reform advances.
Frequently asked questions
Does the €3 duty apply to all parcels under €150?
From 1 July 2026, the fixed €3 customs duty primarily applies to low-value consignments (≤ €150) linked to IOSS-registered non-EU sellers. In other ≤ €150 scenarios, standard tariff-based customs duties may apply.
What is IOSS in simple terms?
IOSS (Import One-Stop Shop) is the EU’s special VAT scheme for distance sales of imported goods. It typically allows VAT to be charged at checkout and reported via a single registration, simplifying import VAT handling.
Does the €3 duty change VAT rules?
Not by itself. Import VAT principles remain in place; this update concerns customs duty being levied more broadly on low-value imports.
Who pays the duty—seller, platform or buyer?
The commercial impact depends on the operating model (e.g., who acts as importer of record, contractual allocation of charges, Incoterms and pricing). Businesses should verify terms and cost pass-through logic.
Is this permanent?
No. This is a transitional measure pending the broader EU customs reform and the EU Customs Data Hub, which is intended to enable item-level customs assessment.
Need support?
LKOS Law Office supports businesses with customs and cross-border trade compliance and practical operating models. Meet our team: Our people, Oscari Seppälä and Liene Krumina.
Note: This update is general information and not legal advice for any specific case.