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EU Customs Duty, Handling Fees, and VAT: Key 2026 Changes for E-Commerce Businesses

  • The EU will abolish the EUR 150 customs duty exemption for small parcels imported into the EU starting 1 July 2026; all e-commerce parcels will be subject to customs duties.
  • A temporary fixed customs duty of EUR 3 per item will apply to parcels valued under EUR 150, provided VAT is settled via the IOSS mechanism.
  • A Union-wide customs handling fee will be introduced in November 2026, with some countries implementing national handling fees as early as January 2026.
  • The EU will encourage use of the IOSS mechanism for VAT from July 2028 and plans to abolish the EUR 150 threshold for IOSS, though this is not yet adopted.
  • These changes will increase import costs for e-commerce businesses selling to the EU, impacting pricing, margins, and operational processes, with some uncertainties remaining regarding fees and implementation dates.

Source: twobirds.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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