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EU Low-Value Import Reform 2026: The New €3 Per-Item Customs Duty

The old €150 duty-free threshold is gone. From 1 July 2026, almost every parcel entering the EU carries a flat customs charge — separate from VAT, and calculated per item, not per parcel.

What Has Changed?

From 1 July 2026, the European Commission has abolished the long-standing customs-duty exemption for consignments valued at €150 or less. In its place sits a temporary flat fee of €3 per item, applying to low-value goods imported into the EU from outside the bloc. The measure runs until 1 July 2028, when the EU's full customs reform is due to replace it with standard tariff rates calculated normally by product category (HS code).

This is a customs duty change, not a VAT change — IOSS and the €150 VAT threshold for import VAT are unaffected and continue to apply separately, on top of this new fee.

1. How the €3 Fee Actually Works

The charge is applied per item, not per parcel. A box containing five identical shirts is charged one €3 duty. A box containing one shirt and one watch is charged €6 — one €3 charge per distinct item.

  • Applies regardless of the total declared value of the consignment
  • Runs alongside — not instead of — any import VAT already due
  • Liability sits with the declarant, which in most e-commerce supply chains is the seller, their customs broker, or the carrier acting on their behalf — not automatically the end consumer

2. Who Actually Pays It

Whoever is named as declarant on the customs import declaration is liable for the €3 charge. For most cross-border e-commerce sellers, that means your carrier or customs broker will collect it as part of the standard import process — but it needs to be built into your landed-cost calculations, since it's a real per-item cost that didn't exist before 1 July 2026.

3. What Happens at the 2028 Transition

The €3 flat fee is explicitly temporary. From 1 July 2028, the EU's broader customs reform is expected to replace it with standard tariff rates, assessed per the ordinary Harmonized System (HS) classification of each product — which for many goods categories will mean a materially different (and for higher-value items, likely higher) duty cost than the flat €3 charge.

Quick facts

  • Effective date: 1 July 2026
  • Flat duty: €3 per item (not per parcel)
  • Runs until: 1 July 2028, then standard EU tariffs apply
  • Former exemption removed: the €150 duty-free threshold
  • Import VAT: unaffected — the separate €150 IOSS VAT threshold still applies
  • Liable party: the declarant (typically seller, broker, or carrier)

What Should You Do Now?

  1. Update your landed-cost math. Add €3 per distinct item to your EU import cost model — not per shipment.
  2. Check how your carrier itemises multi-item parcels. Confirm they're applying the fee correctly per item, since misapplication either over- or under-charges you.
  3. Don't conflate this with IOSS VAT. Both the €3 customs duty and import VAT can now apply to the very same parcel — they're calculated and collected separately.
  4. Start planning for 2028. Model what your typical basket looks like under standard HS-code tariffs, since the flat €3 fee is a temporary bridge, not the end state.

Shipping low-value parcels into the EU and not sure how the new duty interacts with your VAT and IOSS setup? Our team at VAT Support can help you model the real landed cost. Contact us today.

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