In order to strengthen control and revenue collection, and to encourage more efficient and sustainable logistics models, the EUR 150 customs duty exemption is set to be abolished from mid-2028, with a transitional EUR 3 customs duty to be introduced in the interim. Additionally, a handling fee per package is expected to be introduced and the use of IOSS (Import One Stop Shop) is to be encouraged to simplify customs clearance.
More than 65% of e-commerce packages arriving in the European Union (EU) are declared below their actual value. This figure, drawn from European Commission analyses, illustrates the scale of the challenge facing the EU in managing the growing volume of cross-border e-commerce and the high level of non-compliance detected in many of these import cases. In response, European institutions are promoting a set of customs and VAT measures that will have significant consequences for businesses operating in the e-commerce sector.
The customs reform proposal presented by the European Commission in 2023 was based on a clear diagnosis: the existing regulatory framework was not equipped to adequately manage low-value cross-border e-commerce. The exponential growth in shipments from third countries—millions of packages daily with low unit value— revealed significant limitations in control systems. It also exposed substantial problems with tax compliance and fair competition.
One of the central problems identified was the misuse of the relief applicable to low-value shipments (those worth less than EUR 150). This regime allowed many operators to declare values below actual amounts, split shipments, or evade customs and tax obligations, resulting in significant revenue losses and increased fraud. This situation also created a clear competitive advantage for sellers not established in the EU over European operators, reinforcing the need to ensure a level playing field.
Added to these fiscal and competition considerations is environmental concern. The high number of packages arriving daily in the EU has a significant impact in terms of transport, emissions, and waste. The measures adopted therefore aim not only to strengthen control and revenue collection, but also to encourage more efficient and sustainable logistics models.
The main customs and VAT measures are summarized below.
Abolition of the EUR 150 customs duty exemption
In November 2025, the European Commission announced the abolition of the customs duty exemption for low-value shipments, a measure already envisaged in the 2023 customs reform project.
The reform also proposes that platforms participating in online sales assume the status of “importers” of goods and, with it, responsibility for all associated customs formalities and payments. Under this new scheme, platforms will collect customs duties at the point of sale and remit them to their respective Member States, similar to what already occurs with VAT.
To simplify the determination of the applicable tariff and keep the administrative burden at reasonable levels, the reform project provides for a simplified valuation and classification system. Goods will be grouped into five categories, each with an associated tariff rate of between 0% and 17%.
Full entry into force of this measure is scheduled for mid-2028, once the EU Customs Data Hub is operational. This hub will act as a single customs interface for all Member States and will provide operators with the functionalities needed to apply the simplified duty calculation system.
The main objective of this reform is twofold: to eliminate the competitive advantage currently enjoyed by many sellers established outside the EU and to reduce fraud associated with the undervaluation of shipments. The attribution of customs liability to platforms will also help prevent consumers from facing unexpected charges upon delivery of their purchases.
Introduction of a EUR 3 customs duty as a transitional measure
To anticipate the effects of the abolition of the exemption, Member States have agreed to establish, as a transitional measure, a general customs duty of EUR 3 per low-value shipment. This duty will enter into force in July 2026 and will remain in effect until the definitive implementation of the customs reform. The measure will mainly affect shipments linked to sales in which the non-EU seller is registered with IOSS (the one-stop shop system for settling import VAT on distance sales). According to Commission estimates, this would cover approximately 93% of e-commerce parcels.
Introduction of a handling fee
In addition to the above measures, a handling fee per package could be introduced, with an amount between EUR 1 and EUR 2. This fee would be intended to offset the administrative costs arising from the supervision of millions of daily shipments. Regardless of whether its application is ultimately approved at the European level, some Member States—such as France, Romania, and the Netherlands—have already introduced or are considering introducing such fees at national level.
Other complementary VAT measures
Since 2021, all imports have been subject to VAT following the abolition of the exemption for shipments below EUR 22. To facilitate their management and settlement, an optional one-stop shop system was established: the import one stop shop (IOSS). The reforms adopted aim to encourage the use of IOSS, enabling advance VAT collection and simplifying customs clearance. From July 2028, vendors or platforms established outside the EU will become liable for the VAT on imported goods, which will be due in the Member State of final destination, so that this liability can no longer be passed on to consumers. Those who do not use IOSS will need to register in each Member State in which they make sales.
Although many of the measures described are still at the proposal stage, the direction set by the EU is unequivocal. The proposed reform represents a substantial change in the way e-commerce businesses will need to structure their operations in the European market. In this context, businesses operating in the e-commerce sector (as sellers, digital platforms, or logistics intermediaries) will need to assess their exposure to these changes. Monitoring regulatory developments and planning ahead will be key elements in addressing this new landscape.
