The European Commission clarified that the new EUR 3 customs duty on low‑value consignments (≤ EUR 150) will apply from 1 July 2026. Under the IOSS scheme no VAT is due on this duty, whereas VAT is payable on it for imports using Special Arrangements or the standard import procedure. A Union handling fee, expected from November 2026, will be outside the scope of VAT.
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Customs Support Group · about 3 hours ago
EU e‑commerce reform introduces a €3 per line‑item customs fee replacing the €150 exemption from 1 July 2026, and shifts import declaration responsibility from consumers to platforms or sellers from 1 November 2026. Declarants must provide three product identifiers (M‑PID, NS‑PID, S‑PID) and will act as deemed importers, while H7 and H1 declarations will determine duty and VAT regimes. The reform also clarifies carrier filing obligations and IOSS applicability.
Thomson Reuters · 4 days ago
The Thomson Reuters Institute report highlights that EU‑wide ViDA mandates for cross‑border e‑invoicing and digital reporting will come into force in 2030, while many member states are already implementing national e‑invoice and real‑time reporting requirements. Despite widespread awareness, only 22% of EU tax and finance professionals have a formal, funded transition program, underscoring a significant readiness gap.
1stopVAT · 7 days ago
The EU will introduce a fixed customs duty fee of EUR 3 per distinct item for low‑value B2C imports from outside the EU, effective 1 July 2026. The previous duty relief for consignments valued up to EUR 150 will end, and the Commission has issued guidelines to help vendors comply.
Meridian Global Services · 11 days ago
The article explains how contract and toll manufacturing arrangements are treated under EU VAT law, highlighting the importance of economic reality in determining whether the supply is of goods or services. It outlines the reverse charge mechanism for toll manufacturing, the French four-part test, and the risk of creating a Fixed Establishment that triggers local VAT registration and reporting obligations.
Law360 · 12 days ago
An EU court has ruled that grouped companies, even when treated as a single entity for VAT payments, must be considered separately when determining eligibility for certain VAT exemptions. The decision clarifies that VAT group members cannot rely on a collective status to claim exemptions, affecting how VAT groups assess exemption eligibility across the EU.
FlavorCloud · 15 days ago
EU introduces a €3 flat customs duty per HS6 item on IOSS shipments under €150, removes de minimis exemption, and targets a €2‑€3 per package handling fee, affecting cross‑border merchants from July 1, 2026.
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Key Takeaways
It takes effect on 1 July 2026.
No, VAT is not due on the EUR 3 customs duty for IOSS transactions.
VAT is due on the EUR 3 customs duty for imports using Special Arrangements.
The Union handling fee is expected to apply from November 2026 at the earliest and will be outside the scope of VAT.
It is expected to remain in force until 30 June 2028.
Primary source
Read the full article at Global VAT ComplianceThis summary was published on VATfaqs.com on 22 June 2026. It relates to VAT developments in European Union. The original source is Global VAT Compliance.
