EU agrees fixed customs duty on small parcels from 1 July 2026

On 12 December 2025, the European Council agreed that a fixed customs duty of €3 per item will apply from 1 July 2026 on small parcels entering the EU valued at less than €150.

This meets the European Commission’s commitment to put in place a temporary measure until the €150 limit is abolished in 2028 and duty is due on all goods. The aim is to level the playing field, as these parcels are currently duty-free, which leads to unfair competition with EU sellers.

Full details on this new step have yet to be released, but it is understood that the €3 charge will apply to each different item in the parcel based on their six-digit tariff codes. Therefore, a single parcel could have multiple €3 fees applied. The VAT due on the goods will continue to be calculated on the existing basis.

The charge will apply where the seller is using the Import One Stop Shop (IOSS) to account for the supply VAT due on the goods. Based on figures from the EU, this will cover 93% of all e-commerce goods into the EU. Where IOSS is not being used, there will be no charge, but the Commission will monitor whether the rate should be extended to these goods. Many e-commerce sellers use IOSS for its simplicity and ease of accounting for the VAT due. If sellers move away from IOSS to avoid the €3 charge, it can be expected that the Commission will extend its scope.

Importantly, it should be noted that this new charge is not the customs handling fee that is currently being considered, as agreement on that has not yet been reached.

We will provide more information as it becomes available, but in the meantime businesses impacted by the change will need to consider pricing policies to cover the increased costs.

For further information on anything discussed in this article, or how we can help you, please contact your usual Crowe contact.