For years, small parcels valued at €150 or less — often sent directly from non-EU countries to EU consumers — enjoyed a duty-free status when entering the EU’s customs union. While VAT still applied, import duties were waived, making cross-border shopping cheaper for consumers and simplifying operations for overseas sellers.

But that is about to change. On November 13th 2025, EU member states agreed to abolish the €150 duty-free exemption for low-value imports. This shift represents one of the most significant changes to EU cross-border ecommerce in years, affecting costs, compliance, logistics, and customer experience.

This guide breaks down exactly what the removal of the €150 import duty removed threshold means for your operation, the impact on your landed costs, and the essential steps you must take to prepare for the new EU e-commerce customs rules.

What is the €150 Duty-Free Exemption?

Historically, low-value parcels (goods valued ≤ €150) imported into the EU were exempt from customs duties, though they still required VAT and customs declarations.

The rule existed for practical reasons:

1. Duties on low-value shipments were small
2. The administrative cost of collecting them often exceeded the revenue

This made cross-border ecommerce — particularly small parcels and direct-to-consumer shipments — attractive and economically viable for many sellers outside the EU.

However, rapid growth in cross-border ecommerce created new problems:

1. An enormous volume of small parcels entered the EU each year
2. Many were undervalued to stay below the €150 line
3. EU-based importers argued the rule distorted competition
4. Customs authorities faced increasing challenges enforcing safety and compliance rules

With these concerns rising, the EU concluded that the existing model was no longer sustainable in a modern ecommerce environment.

Why the EU Is Ending the €150 Exemption

Several major factors led to the removal of the duty-free threshold:

1) Surge in Low-Value Imports

Billions of small parcels now enter the EU annually, overwhelming customs systems.

2) Undervaluation and Abuse

Many parcels are declared at artificially low values to avoid duties, reducing revenue and harming compliant importers.

3) Uneven Competition

EU-based retailers and bulk importers must pay duties, while some direct-to-consumer imports bypass them entirely.

4) Regulatory Enforcement Challenges

High parcel volume makes it harder to ensure product safety and compliance with EU standards.

5) Customs Modernisation

The abolition supports broader EU reforms aimed at creating a more transparent, data-driven, and harmonised customs system across the Single Market.

Key Timeline & What to Expect

Below is the current roadmap for the removal of the €150 threshold and the transition to a new customs framework.

EU Customs Reform Timeline (2025–2028)

What Changes for Ecommerce — Operational Impacts

The removal of the €150 threshold will reshape several core aspects of ecommerce logistics, cost structure, and compliance.

Impact on Ecommerce Sellers

What's the Status of Import One-Stop Shop (IOSS)?

The removal of the €150 duty-free exemption does not eliminate IOSS.

IOSS remains a key VAT mechanism for distance sales of imported goods valued up to €150, particularly for:

1. Collecting VAT at checkout
2. Speeding up delivery
3. Preventing VAT at-the-door charges

However:

1. Customs duties will now apply in addition to VAT
2. IOSS must coexist with duty-collection mechanisms
3. Data consistency between VAT declarations and customs filings becomes more important

IOSS remains valuable, but it no longer guarantees a “tax-smooth” delivery experience on its own.

What Ecommerce Businesses Should Do Now

To prepare for the upcoming changes, ecommerce brands and sellers should:

1. Audit your import flows

Identify SKUs and markets relying on the €150 exemption.

2. Recalculate landed costs

Include duties, handling fees, and new compliance-related expenses.

3. Review fulfilment & warehouse strategy

EU-based 3PLs or warehouses may now be more cost-effective.

4. Decide on Incoterms (DAP vs DDP)

DDP minimizes delivery friction but requires duty calculation at checkout.

5. Strengthen customs data accuracy

Ensure HS codes, valuations, and origin are correct and consistent.

6. Coordinate with platforms, couriers & 3PLs

Clarify how duties will be handled during the transition period.

7. Update customer communication

Explain any changes in shipping cost, timing, or tax handling.

8. Stay updated on EU legislation

More detailed rules will be published as the transition approaches.

Conclusion

The EU’s decision to abolish the €150 duty-free threshold marks a major shift in cross-border ecommerce. From 2026 onward, low-value parcels will be subject to customs duties, and a fully digital customs system is expected by 2028.

This transition will reshape fulfilment models, increase compliance requirements, and require brands to rethink pricing and logistics strategies. However, businesses that act early — updating data, reviewing costs, and strengthening supply chain resilience — will be best positioned to compete in the new regulatory environment.

If you ship into the EU, now is the time to reassess your customs and VAT strategy and prepare for the next phase of ecommerce regulation.

FAQ

1. When will the €150 duty exemption be removed?

The exemption is planned to end as early as 2026, when a simplified duty-collection mechanism is introduced. A fully digital EU customs system is expected around 2028, but low-value parcels will become dutiable before that.

2. Will low-value parcels under €150 now pay customs duties?

Yes. Once the exemption is removed, all imported parcels — regardless of value — may be subject to customs duties, along with VAT and standard customs declarations.

3. Does this change affect IOSS (Import One-Stop Shop)?

No. IOSS remains in place for VAT collection on B2C imports up to €150. However, IOSS will coexist with new customs duty obligations, meaning sellers must manage both VAT and duties.

4. How will this impact cross-border ecommerce sellers?

Sellers may face:

1. higher landed costs due to duties
2. stricter customs data requirements
3. longer customs processing times if declarations are inaccurate
4. higher refusal rates if shipping DAP (customer pays duties on delivery)
5. Many sellers will need to adopt DDP models or shift to EU warehousing.

5. What should sellers do to prepare?

Key steps include:

1. auditing HS codes, customs values, and origin data
2. recalculating landed costs and updating pricing
3. evaluating EU warehousing or hybrid fulfilment
4. ensuring checkout systems can calculate duties (for DDP)

6. What is the difference between DDP and DAP?

DDP (Delivered Duty Paid):

The seller pays all duties and taxes upfront and ensures the parcel is delivered with no extra charges for the customer. This provides the best delivery experience and avoids customs delays or refusals.

DAP (Delivered At Place):

The seller ships the product, but the buyer must pay duties and taxes upon delivery. With the end of the €150 exemption, DAP shipments may face higher refusal rates, unexpected costs for customers, and longer customs processing times.

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