EU’s €3 Customs Levy Is Live: What Low-Value Importers Must Do Now
Last week, the customs treatment of every small parcel entering the EU changed. Here is what happened on 1 July 2026 — and what cross-border sellers need to do about it.
The €150 duty exemption is gone
Until 30 June 2026, goods imported into the EU in consignments with an intrinsic value of €150 or less entered free of customs duty. Import VAT has applied to all imports since the 2021 e-commerce reforms, but duty did not. That long-standing exemption ended on 1 July 2026.
In its place, the EU has introduced a transitional flat customs levy of €3 per item on qualifying consignments valued at €150 or less, under Council Regulation (EU) 2026/382, formally agreed by the Council on 11 February 2026. The European Commission published guidance notes for the launch on 2 June 2026.
How the €3 levy actually works
- Per item classification, not per parcel. The levy applies per item type by customs code within a shipment. Five identical T-shirts attract one €3 charge; a T-shirt plus a watch attract €6, because they fall under different tariff headings.
- Separate from VAT. Import VAT continues to be declared and paid as before, including via the Import One-Stop Shop (IOSS) where applicable. The levy is an additional customs charge, not a VAT change.
- IOSS sellers are squarely in scope. The measure primarily targets goods sold by non-EU sellers registered under IOSS, which covers roughly 93% of e-commerce flows into the EU — but EU businesses importing goods from third countries are affected too.
- Temporary by design. The flat levy runs until the broader EU customs reform lands in 2028, when the Customs Data Hub comes online and ordinary classification-based duties (grouped into simplified tariff “buckets”) replace the flat rate.
More charges are on the way
The €3 levy is not the end of the story. A separate EU-wide customs handling fee on e-commerce parcels — proposed at around €2 per item — remains under negotiation between the Council and Parliament and may take effect from late 2026. Meanwhile, some Member States are moving unilaterally: France’s National Assembly has voted to apply a national parcel fee of €5, and the Netherlands and Belgium are considering fees of their own. From 1 October 2026 the Commission must also monitor monthly whether sellers are diverting trade away from IOSS to dodge the levy, with power to propose corrective legislation if avoidance appears.
What sellers should do this month
- Rebuild landed-cost and pricing models to include €3 per item classification for EU-bound orders under €150.
- Audit product data: precise descriptions and accurate HS classification now directly determine charges. Generic descriptions such as “accessories” invite delays and queries.
- Confirm IOSS registration and checkout VAT collection are working correctly — the levy interacts with, but does not replace, IOSS reporting.
- Decide clearly between DDP and DDU per market, so customers are not surprised by doorstep charges.
- Model the effect of consolidating orders or using EU-based fulfilment, which takes sales outside the import levy entirely.
Selling into the EU and unsure how the new levy interacts with your IOSS setup? Our specialists work with cross-border sellers in 30+ countries every day.
Book a free 15-minute call →Sources: Council Regulation (EU) 2026/382; European Commission guidance notes of 2 June 2026; Council of the EU announcements. Reference information compiled by VAT Support — informational only, not tax advice.