EU Import Rules Explained
When you order from a store outside the European Union, your package can be subject to up to three separate charges when it enters the EU: import VAT, customs duty, and a carrier handling fee. Since 1 July 2026, the rules around the second charge changed for a large share of orders - this guide reflects the current rules, not the ones that applied before that date.
Key Takeaways
- Orders under €150 are no longer automatically duty-free. If the store collects VAT at checkout (IOSS), a flat €3 customs duty now applies per item type instead.
- Non-IOSS orders under €150 are, for now, still duty-free - only import VAT applies.
- Orders over €150 are unchanged: import VAT, plus customs duty (typically 0-16.5% depending on the product), plus a carrier handling fee.
- Import VAT is charged at your own country’s rate, calculated on goods + shipping (and, above €150, on duty too).
What Changed on 1 July 2026
The EU scrapped its long-standing customs duty exemption for consignments valued at €150 or less. In its place, a temporary flat €3 duty per distinct item now applies to low-value parcels sold by IOSS-registered sellers - currently around 93% of EU e-commerce imports (European Commission, 2026). The measure runs until 1 July 2028, after which standard percentage-based duty rates are expected to apply instead.
The duty is charged per distinct product type, not per unit - five identical t-shirts in one parcel count as one item type, but a t-shirt and a watch in the same parcel count as two, and owe €6 combined.
One detail that catches people out: this new duty currently only applies to IOSS-registered sellers. Non-IOSS stores selling orders under €150 are, for now, still outside its scope - the European Commission is monitoring whether sellers shift away from IOSS specifically to avoid the new duty, and may extend the rule if that happens.
The €150 Threshold
The €150 threshold is based on the intrinsic value of the goods - not including shipping - and it now splits four ways depending on order value and whether the seller uses IOSS:
| Order value | Store uses IOSS | What you pay |
|---|---|---|
| Under €150 | Yes | VAT already included in the price, plus a flat €3 customs duty per item type |
| Under €150 | No | Import VAT only - no customs duty (for now) |
| Over €150 | Yes | VAT already included in the price, plus standard customs duty and a carrier handling fee |
| Over €150 | No | Import VAT, plus standard customs duty, plus a carrier handling fee |
In practice, IOSS registration is legally capped at consignments up to €150, so the “over €150 and IOSS” row is unusual - most IOSS orders fall in the first row.
Import VAT
Import VAT is charged at the same rate as domestic VAT in your country. Rates vary by EU member state, for example:
| Country | VAT rate |
|---|---|
| Denmark | 25% |
| Germany | 19% |
| Sweden | 25% |
| France | 20% |
| Netherlands | 21% |
This is a sample, not the full list - Dutix detects your country automatically and applies the correct rate for all 27 EU member states. VAT is calculated on the total value of goods plus shipping, and above €150, on duty too.
Customs Duty
For orders over €150 (or non-IOSS orders under €150, once the exemption ends in 2028), customs duty is a tax on the goods themselves, calculated as a percentage of their value. The rate depends entirely on the product category - not the store, the price, or the shipping method.
A few examples: clothing sits at a flat 12%, most electronics are duty-free, and footwear varies sharply by material - 8% for leather uppers versus 16.5% for textile uppers. See the EU tariff lookup tool for the full, sourced list across every product category we track.
Carrier Handling Fee
When your carrier clears the parcel through customs on your behalf, they charge a handling fee - typically €15-€30 per shipment, separate from the shipping cost you already paid at checkout. This only applies to orders over €150; it doesn’t apply to the new flat €3 low-value duty.
IOSS (Import One-Stop Shop)
Some non-EU retailers are registered for IOSS, which lets them collect EU VAT at checkout instead of leaving it to be collected at the border. If your retailer uses IOSS, you won’t be charged VAT again on delivery - it’s already paid.
What IOSS no longer means, as of 1 July 2026, is a duty-free order. IOSS orders under €150 now carry the flat €3-per-item customs duty described above, charged on top of the (already-paid) VAT. Dutix detects IOSS-registered stores automatically and includes this duty in your estimate.