EU Council has approved a temporary flat €3 customs duty per item for low‑value e‑commerce imports (≤€150) from third countries, effective 1 July 2026 until July 2028. The levy targets non‑EU sellers registered under the Import One‑Stop Shop, covering about 93 % of parcels, and is separate from VAT. It will be replaced by the EU Customs Data Hub in 2028, after which standard customs tariffs will apply.
It starts on 1 July 2026 and is scheduled to end in July 2028.
Non‑EU merchants registered under the Import One‑Stop Shop (IOSS), covering roughly 93 % of e‑commerce parcels.
It is charged per item by customs code; a parcel with multiple items of different HS sub‑headings incurs multiple €3 charges.
No, the duty is separate; VAT continues to be declared and paid via IOSS where applicable.
Get VAT and indirect tax news delivered to your inbox twice a week.
No spam. Unsubscribe anytime.
Darkopavic · about 8 hours ago
The European Union has approved a flat €3 customs duty on low‑value parcels valued below €150, effective 1 July 2026, as a temporary measure before broader customs reform in 2028. The rule applies by item type rather than per box and aims to curb unfair competition from direct‑to‑consumer imports, especially from China.
Bloomberg Tax · about 8 hours ago
The European General Court issued a preliminary ruling (Case No. T‑657/24) on 9 February 2026 clarifying that credit intermediaries are exempt from VAT only when they canvass and source customers for mortgage‑loan agreements and assist with preparatory work before agreements are concluded. A Portuguese credit intermediary’s commission‑based mortgage‑loan intermediation was challenged, and the court held that unless these conditions are met, the services are taxable.
VATCalc · 1 day ago
The European Parliament’s ECON committee has released a draft report urging the removal of the long‑standing VAT exemption for financial and insurance services under Directive 2006/112/EC. The report highlights the distortions caused by the exemption, the proliferation of over 90 sector‑specific taxes across the EU, and calls for a coordinated framework that taxes identifiable fees, clarifies emerging services, and harmonises cost‑sharing mechanisms.
Bloomberg Tax · 2 days ago
A draft European Parliament report dated Feb. 4 calls for changes to the VAT exemption for the EU’s financial sector, arguing it is misaligned with today’s economic and technological realities. The report proposes coordinated EU‑wide taxation where feasible and minimum standards for temporary windfall taxation to align exceptional profits with long‑term public investment priorities. It was authored by German MEP Matthias Ecke.
Business Reporter · 8 days ago
A leading global SaaS provider discovered that 10% of its customer tax IDs were missing or invalid, exposing over $9 million in potential annual VAT shortfalls. The article highlights gaps in the EU VIES system, varying validation frequency requirements across jurisdictions, and the operational benefits of automated tax ID validation.
VatCalc · 14 days ago
The article explains how the upcoming ViDA framework will eliminate tolerance for inconsistencies between VAT determination, invoicing and reporting, pushing control to the transaction level. It highlights that intra‑EU transactions will require near real‑time digital reporting, and notes key future dates for reverse‑charge harmonisation and the withdrawal of the European Sales Listing. The piece also discusses the implications for triangulation and supply‑chain transactions and promotes a single‑engine solution for compliance.
