EU Low-Value Shipment Duty Changes – What Businesses Need to Know

Includes addendum12/05/26…

On July 1^st 2026, the EU removed the €150 de minimis threshold – how does this affect you?

General Overview

Why were these changes introduced?

The European Commission updated its customs framework to better manage the growing volume of low-value eCommerce shipments and improve consistency, compliance, and data accuracy across imports. As a result, import duty is now payable on all commercial shipments, regardless of value.

What new import charges were introduced?

A €3 import charge is applied to each 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.

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 product identifier requirement

Specific product identifiers will be required. Broad or generic descriptions of an order will no longer be sufficient.

Acceptable identifiers may include:

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

Rules of origin still matter

Businesses shipping goods into the EU under the UK-EU Trade and Cooperation Agreement (TCA) should 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: