EU to Eliminate Tax Exemptions for Low-Value Goods in July 2026
The EU will eliminate tax exemptions for B2C imports under 150 euros effective July 1, 2026, requiring single customs declaration for packages not under IOSS, significantly increasing compliance thresholds.
What are the key facts?
- 1Effective date: July 1, 2026
- 2Policy: Eliminate exemption under 150 euros, impose 3 euros fixed duty
What happened?
Under the EU Customs Reform Bill, the EU will phase out the tax exemption for B2C imports under 150 euros, requiring single customs declarations for packages not using the IOSS system. Starting July 1, 2026, goods valued under 150 euros will no longer enjoy tax exemption and will instead incur a fixed fee of 3 euros per shipment. This implementation will significantly raise compliance barriers for cross-border e-commerce, and sellers need to prepare ahead for tax cost assessments and customs logistics.
What does this mean for cross-border sellers?
This policy means sellers need to reassess their pricing and logistics strategies in the European market to ensure compliance with IOSS requirements. Failing to adjust may lead to customs delays, impacting customer experience. Top priority action: Update product pricing strategies this week to address upcoming tariff changes.