New EU customs duty, handling fees and VAT requirements starting from 2026: five things e-commerce businesses need to know

What is happening?

EU customs duty

Following our earlier article, the EU Member States now agreed to abolish the EUR 150 customs duty exemption for the import of small parcels into the EU as of 1 July 2026. This agreement is part of the EU customs reforms and is two years ahead of the original 2028 schedule. 

All e-commerce parcels imported into the EU will now become subject to customs duties, regardless of value. As a temporary measure, the EU will apply a fixed customs duty of EUR 3 on small parcels valued at less than EUR 150 as of 1 July 2026. The fixed customs duty will initially be applied per item and provided that VAT is settled via the Import One Stop Shop (IOSS) mechanism. The temporary measure will apply until a final measure is agreed.

EU and national customs handling fees

In addition, a Union wide customs handling fee launches in November 2026. This is expected to be a relatively small amount per line on the import declaration. Some EU Member States like Belgium, France, Italy, the Netherlands and Romania are considering introducing or already have introduced national customs handling fees earlier, even per 1 January 2026.

EU VAT

On the VAT side, the EU Member States agreed to encourage and incentivise the IOSS mechanism, i.e. the single VAT return for B2C distance sales of goods imported into the EU, as of 1 July 2028. The EU also continues its plans to abolish the EUR 150 threshold for IOSS purposes, although a proposal has not been adopted yet. Under its VAT in the Digital Age (“ViDA”) initiative, the EU also continues to enhance and secure IOSS. 

Why?

The continued growth of international e-commerce has put pressure on the EU’s customs and VAT systems. The reforms aim to, amongst others, create a level playing field between e-commerce and traditional retail, cover increasing costs of customs supervision and improve VAT collection.

Which businesses are impacted? 

This will impact businesses engaged in B2C distance sales of goods imported into the EU, including e-commerce sellers, online platforms and their logistics services providers. Particularly those currently selling and shipping high volumes of small parcels into the EU below EUR 150.

Bird & Bird’s view

The reforms can be highly impactful for e-commerce businesses operating on the EU market. While operations may be simplified and improved, the cost of import will increase, impacting margins and profitability. E-commerce businesses should now consider customs and VAT updates for their pricing, customer journeys, supply chain handling, ERP systems and T&Cs with consumers and fulfillment partners. 

That said, uncertainties for e-commerce businesses remain, such as the validity of national or EU-wide handling fees, as well as the status and exact date of abolishment of the EUR 150 threshold for IOSS purposes.

What should you do now?

If you operate an e-commerce business importing goods into the EU, you should assess the impact on your costs, pricing and operations now. We also recommend quantifying any financial exposure, monitoring which EU Member States introduce national handling fees early and evaluating whether using the IOSS mechanism makes sense for your business. Lastly, e-commerce businesses should consider whether to challenge validity of national or EU-wide handling fees through formal objections or not.

Please reach out to Brian Mulier, Dick Ignacio, Andy van Esdonk or Aïsha Uwugiaren to discuss these developments further. It all starts with a conversation.