There are upcoming changes affecting consignments imported into the European Union with an intrinsic value of €150 or less, particularly for businesses currently operating under the Import One Stop Shop (“IOSS”) regime. As part of the EU Customs Reform Package, the existing customs duty relief for low value consignments will be removed from 1 July 2026.
Under the current rules, consignments with an intrinsic value not exceeding €150 generally benefit from relief from Customs Duty (although import VAT may still apply). Under the revised framework, low value consignments imported into the EU will instead become subject to a fixed customs charge. The European Council has agreed that, from 1 July 2026, a flat-rate customs duty of €3 per item/tariff heading will apply to qualifying consignments imported into the EU where the seller utilises the IOSS regime.
Key points arising from these changes include:
- The current Customs Duty exemption for consignments valued at €150 or less will cease to apply from 1 July 2026.
- A new fixed customs duty charge will apply to low value imports into the EU.
- The changes are expected to impact non-EU e-commerce suppliers, online marketplaces and intermediaries currently relying on the IOSS simplification.
- IOSS will continue to operate for VAT purposes, meaning import VAT may still be collected and remitted through the IOSS return process.
- Customs declarations will continue to be required for all imported consignments regardless of value.
How the Customs Charge May Be Discharged
At present, it is expected that the customs charge will generally be collected through one of the following mechanisms:
- Collection at point of sale
Businesses may elect to incorporate the applicable customs charge into the checkout process, similar to the current IOSS VAT collection model. - Collection by postal operators, couriers or customs agents
Where charges are not collected upfront, the customs duty may instead be collected by the relevant postal operator, express carrier or customs agent before the goods are released for delivery within the EU. - Customs intermediary arrangements
Businesses may also engage customs intermediaries or logistics providers to manage declarations and payment processes on their behalf.
While further operational guidance is expected from both the European Commission and national customs authorities, businesses should begin reviewing:
- pricing models;
- checkout disclosures;
- customs data and tariff classification processes;
- contractual arrangements with fulfilment providers and carriers; and
- customer communication procedures.
Further information can be found through the Irish Revenue Commissioners and EU Customs guidance at:
- Revenue – Import One Stop Shop (IOSS)
- Revenue – Customs Information for Traders and Agents
- Revenue – Paying Import Charges
- European Commission – Customs Formalities for Low Value Consignment