- Since July 2021, all commercial imports into the EU are subject to VAT, with the IOSS allowing VAT-exempt imports under EUR 150 if VAT is charged at sale.
- Many low-value parcels are undervalued on customs declarations to avoid VAT and duties, resulting in significant revenue loss and fraud.
- The EU will abolish the EUR 150 threshold, making customs duties applicable to all packages regardless of value, once the EU Customs Data Hub is operational (expected by 2028).
- A temporary solution for collecting customs duties on e-commerce parcels will start as early as 2026, and a flat €2 e-commerce handling fee will be introduced in November 2026.
- The changes aim to close the VAT gap, encourage use of the IOSS, and ensure non-EU suppliers declare and pay VAT and duties on all goods entering the EU.
Source: meridianglobalservices.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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