Includes addendum12/05/26…

On July 1st, the EU is removing the €150 De Minimis Threshold – how will this affect you and what do businesses need to prepare for?

General Overview

Why are these changes being introduced?

Currently all shipments with a value less than €150 are duty free into the E.U.

This particularly benefits E-tailers sending individual shipments into the EU. The Commission is updating its customs framework to better manage the growing volume of low-value eCommerce shipments and improve consistency, compliance, and data accuracy across imports which translates as Duty will be payable on all shipments.

 

Charges and costs

What new import charges are being introduced?

From 1st July 2026, a €3 import duty will be applied per line item on goods valued up to €150 within each shipment. A line item refers to a single product entry in a shipment that is classified under a specific HS code. For example, a shipment with two different product types (e.g.a T-shirt and a Tote bag) will incur two €3 charges (€6 total).

This is specifically designed for B2C e-commerce shipments, particularly those using the Import One-Stop Shop (IOSS) scheme. While IOSS is currently optional, upcoming EU VAT in the Digital Age (ViDA) reforms due in 2028 are expected to make IOSS the practical standard for most businesses shipping B2C orders into the EU. Without IOSS registration, sellers may ultimately need VAT registrations in multiple EU member states.

From November 2026 there may also be a small EU handling fee per consignment. This is currently under negotiation.

Do these charges replace existing duties or fees?

The €3 per line charge replaces the current low-value duty exemption.

Future EU VAT & IOSS changes (2028)

What additional changes are planned?

From July 2028, the EU is expected to expand the Import One-Stop Shop (IOSS) scheme to cover almost all B2C e-commerce shipments, with the current €150 threshold likely to be removed.

In addition:

  • Marketplaces such as Amazon and Etsy will increasingly become responsible for collecting VAT on sales made through their platforms.
  • VAT collection at delivery by carriers or postal operators is expected to end from March 2028.
  • The changes are designed to improve VAT collection and reduce delivery delays caused by unpaid duties and taxes.

Many carriers and marketplaces are already encouraging businesses to prepare for wider IOSS adoption.

 

Important rule change

What changes on 25th March 2026?

For all shipments valued at €150 or less (B2C and B2B, including IOSS), a Product Identifier must be provided at shipment creation.

What is a product identifier?

It has been the case for 2 years that broad descriptions of the contents of an order are insufficient and that specific identifiers are required; these can be:

  • SKU codes
  • HS/Commodity codes
  • Retail platform product references
  • Model numbers
  • Factory codes
  • EAN/UPC/GTIN/ISBN numbers

 

Operational Impact

What should businesses do now?

You should begin preparing for:

  • Capture of product-level identifiers in your systems
  • Review of SKU and product data quality
  • Awareness of new duty and fee structures
  • Review of IOSS readiness for B2C EU shipments
  • Assessment of HS code accuracy at SKU level
  • Validation of UK-EU Rules of Origin compliance

 

Rules of origin still matter

Businesses shipping goods into the EU under the UK-EU Trade and Cooperation Agreement (TCA) should also review whether their products genuinely qualify for UK preferential origin status.

Goods that are not manufactured or substantially processed in the UK may still attract additional charges when entering the EU, even where shipped from the UK.

This may particularly affect sectors dealing with “information media” products, including:

  • DVDs and CDs
  • Vinyl records
  • Books and printed publications
  • Magazines and journals

Businesses should review product origin status, HS code structures (postal carriers want 10 digit HS codes) , and landed-cost implications ahead of the July 2026 changes.

 

Final Note

This information is based on current EU guidance and is subject to change. Final implementation details, billing processes, and system requirements will be confirmed closer to rollout.