€3 fixed customs duty will apply

Starting 1 July 2026, a fixed customs duty of €3 will be applied to small parcels valued at less than €150 exported to the EU.

The rate will be applied to all goods exported to the EU by non-EU businesses that are registered in the EU’s Import One-Stop Shop (IOSS) for VAT purposes.

Whether the rate will also be applied to goods sold by traders that are not registered in the IOSS remains under review.

The new fixed customs duty is a temporary measure that will stay in place until a permanent solution to eliminate the customs duty relief threshold comes into force. At that time, all goods under €150 will have customs duty applied at the normal EU tariffs for individual products.

A so-called ‘handling fee’ is also under discussion by the EU Council, however, this is separate to these measures.

Government guidance is available on how to register for the VAT IOSS scheme to report and pay VAT due on imports of low-value goods to consumers in the EU, Northern Ireland, or both.