The EU removed its €150 customs threshold: what changes for sellers

For years, a parcel from outside the EU worth €150 or less paid VAT but no customs duty. That relief ended on July 1, 2026. The change came a year after the U.S. suspended its own $800 de minimis exemption, and it hits the same sellers: anyone shipping low-value orders directly to consumers from China, the U.S., the UK or anywhere else outside the EU.

Here is what changed, what it costs per order, and what is still coming.

What changed on July 1, 2026

The Council agreed on December 12, 2025 to levy customs duty on small parcels from July 1, 2026. The legal act is Council Regulation (EU) 2026/382 of February 11, 2026, which removed the threshold-based duty relief from the EU's duty relief regulation. Commission Implementing Regulation (EU) 2026/1200 of June 5, 2026 set the operating rules.

Instead of applying the full EU tariff to millions of tiny parcels, the EU chose a flat interim duty. It applies to consignments with an intrinsic value of €150 or less sold as business-to-consumer distance sales. It applies whatever VAT route is used (IOSS, the special arrangements or standard import VAT) and to every type of good.

How the €3 duty is counted

The duty is €3 per item, and "item" means a distinct tariff classification in the consignment, not each unit. The Commission's own example:

This makes classification matter even for cheap goods. Two items under the same code cost €3 together. Two items under different codes cost €6. A seller bundling a hoodie and a cap pays twice the duty of a seller shipping two hoodies.

VAT has not changed

VAT on low-value imports changed earlier, on July 1, 2021. That reform removed the €22 VAT exemption, so VAT is due on every commercial import, and created the Import One-Stop Shop (IOSS).

• IOSS lets a seller or marketplace charge EU VAT at checkout and declare it monthly in one member state. Parcels with a valid IOSS number clear without VAT being collected at the border.
• IOSS covers consignments of €150 or less only, and excludes goods subject to excise duty such as alcohol and tobacco.
• Most non-EU sellers must appoint an EU intermediary to register for IOSS.
• On marketplaces, the platform is usually the deemed supplier and handles VAT for you.
• Above €150, there is no IOSS. The parcel pays normal duty at the TARIC rate plus import VAT, usually collected from the buyer by the carrier unless you ship delivered duty paid.

A worked example: a U.S. seller ships a €40 hoodie to a customer in Germany through IOSS. The seller charges German VAT of 19%, which is €7.60, and the parcel pays €3 customs duty. The landed cost to the customer is €50.60 before shipping, against €47.60 before July. Whether the €3 duty enters the VAT base is a point some advisers read differently; secondary guidance says it does not, so check with your IOSS intermediary.

The EU is also discussing removing the €150 cap on IOSS so it covers higher-value parcels. Member states were still split as of October 2026, with reports that the November 9, 2026 ECOFIN meeting would try to reach agreement. Nothing is decided.

The €2 handling fee

A separate EU handling fee is on the way. On September 21, 2026 the Commission adopted a delegated regulation setting a Union handling fee of €2 per item for goods released for free circulation in distance sales. Unlike the €3 duty, it is not limited to parcels under €150.

The Parliament and Council can still object, and the fee applies from the tenth day after publication in the Official Journal. Many reports cite November 1, 2026 as the start date. As of October 22, 2026, we have not seen it published, so treat that date as expected, not confirmed.

National fees on top

Some member states added their own charges. These move often, so confirm them with your carrier before you quote a price.

What is coming in 2027 and 2028

The €3 duty is a bridge. The longer-term fix is the reformed Union Customs Code, Regulation (EU) 2026/2108, published in the Official Journal on September 19, 2026.

When the flat duty ends, low-value parcels will pay the actual tariff rate for their code. That is when an accurate 8 or 10-digit EU classification will matter as much as it does for U.S. entries now.

What to do now

1. Classify every SKU. You need at least the HS code today and the full CN or TARIC code by 2028. Start from the U.S. code you already have and confirm the EU digits.
2. Count items per order. Model the €3 duty by distinct tariff code per parcel, not per unit, and look at how bundles are declared.
3. Sell delivered duty paid. Show VAT and the €3 duty at checkout. Buyers who get a surprise bill at the door refuse parcels.
4. Register for IOSS through an intermediary, or confirm your marketplace handles it.
5. Send product identifiers to your carrier from November 1, 2026: merchant, manufacturer and EAN or similar code.
6. Budget for the €2 handling fee and any national fees, and update prices when they start.

If you ship to both the U.S. and the EU, you now classify each product for both markets. HTSBase gives you the U.S. 10-digit code and the shared 6-digit HS code in one step, which is the level used on H7 low-value declarations.