E-commerce: EU’s EUR 150 customs duty exemption for B2C sales of imported goods is to be abolished and VAT is to be synced

Abolishment of Customs Duty Exemption: The European Commission plans to abolish the EUR 150 customs duty exemption for low-value consignments from outside the EU, potentially implementing this change earlier than the proposed date of March 1, 2028. Additionally, the EU VAT rules will be synced with these customs reforms, including the removal of the EUR 150 threshold for the Import One Stop Shop (IOSS).
Impact on E-Commerce Businesses: E-commerce businesses will face customs duties on all B2C sales of imported packages, regardless of value. While these sales will remain subject to VAT, removing the EUR 150 IOSS threshold will make all B2C sales of imported goods eligible for taxation at the point of sale, potentially simplifying operations. Businesses will need to update their Customs & VAT governance, IT systems, and operational processes to manage these changes.
Immediate Actions for E-Commerce Businesses: E-commerce businesses should assess the impact of these changes and integrate them with other developments like ViDA, CESOP, and DAC7. Staying informed on legislative updates and proactively adapting their processes and systems is recommended.