If you sell from the UK to EU customers, the way your parcels are treated at the border changed on 1 July 2026. A fixed €3 customs duty now applies to low-value parcels (€150 or less) entering the EU from non-EU sellers. For UK ecommerce brands, this is a significant shift in how small parcels are treated at the border.
This isn’t just another regulatory update. If you haven’t prepared, your customers could face extra charges on delivery, parcels may be delayed or stopped, and EU sales could suffer.
Managing VAT and customs can already feel complex, and these changes add yet another layer. Here’s what’s changed and what to check in your own setup.
Key Changes to EU Duties You Need to Know
These changes are part of a wider EU Customs Reform designed to modernise import processes and shift more responsibility onto sellers.
Here’s what you need to know:
- The EU has abolished the €150 exemption
- A €3 customs duty now applies to shipments valued at €150 or less
- It applies per item based on its tariff heading. This means the duty isn’t per parcel, but per unique type of product.
- For example, a parcel with two T-shirts and one hat would incur €3 for the T-shirts and €3 for the hat, for a total of €6.
- The €3 duty is temporary. It runs until 1 July 2028, when standard EU tariffs will apply to low-value parcels instead.
In short: selling into the EU is becoming more tightly regulated – and the cost of getting it wrong is increasing.
How the EU €3 Customs Duty Impacts Your UK Ecommerce Business
The EU remains one of the largest and most valuable markets for UK ecommerce brands, but since July 2026, new customs rules have changed how low-value parcels are handled at the border.
The €3 customs duty means sellers must take more responsibility for how duties and VAT are managed, or risk damaging both sales and customer experience. For multi-item orders, the cost adds up quickly, since a parcel with three different types of product attracts €9 in duty before VAT is added.
How to prepare your ecommerce business
The €3 duty is a clear signal that cross-border ecommerce is becoming more tightly regulated. If you’re still shipping to the EU on your pre-July setup, these are the three areas to check:
- Pricing and checkout: decide whether you absorb the duty or pass it on, and make sure EU customers see the full cost before they pay.
- IOSS: if you sell low-value goods to EU consumers, IOSS keeps VAT collection at checkout and your parcels moving through customs. IOSS covers VAT only, so the €3 duty is charged separately.
- Customs data: the duty is calculated by tariff heading, so every product needs an accurate HS code, value and description.
Frequently Asked Questions
Do parcels under €150 have a €3 EU customs duty?
Yes. From 1 July 2026, all low-value parcels (under €150) shipped from non-EU countries to EU consumers will incur a fixed €3 customs duty. This fee is separate from VAT and any carrier handling charges.
What happens if I don’t register for IOSS?
Without an IOSS number, EU customers may be charged VAT at delivery, leading to unexpected fees, slower customs clearance, and higher cart abandonment. Registering for IOSS ensures a smoother checkout and predictable costs for your customers.
Please note IOSS charges are separate to the new €3 charges.
Will the €3 EU customs duty be permanent?
No. The €3 duty is temporary. The EU plans broader customs reforms, which may introduce new tariffs, automated import checks, or updated VAT collection processes in the coming years.
Does the €3 customs duty replace existing EU tariffs?
The €3 duty is a temporary fee for low-value parcels. Standard EU tariffs still apply to shipments over €150 and may change once wider EU customs reforms are implemented.
What should my ecommerce store do to prepare for the €3 duty and IOSS?
Register for an IOSS number if you haven’t already. Ensure your shop displays VAT and duties correctly at checkout. Automate customs documentation with software such as Zenstores where possible.
Can Zenstores help with EU customs and IOSS compliance?
Yes. Zenstores pulls product data from Shopify, including HS codes, values, and descriptions, and submits it with your IOSS number to carriers. Customs paperwork is generated automatically alongside shipping labels, reducing errors and speeding up EU delivery.
