UK → EU: what your European buyer pays in 2026
Since 1 July 2026, low-value parcels into the EU pay customs duty. IOSS and postal parcels pay a flat €3 per item. From 1 November 2026 a €2 handling fee per item is scheduled on top. VAT is due on every parcel.
At a glance
| Duty-free threshold | None since 1 Jul 2026 (€3 per item for IOSS/postal parcels ≤ €150) Verified Verified |
|---|---|
| VAT | Buyer's country rate (17–27%), at checkout with IOSS or on delivery Verified Partly verified |
| Handling fee | €2 per item from 1 Nov 2026 (scheduled) Partly verified |
| Preferential origin | UK-made goods can get 0% duty under the TCA with a statement on origin. Effect on the €3 is unconfirmed Partly verified Unverified |
Worked example: £60 silver ring + £5 shipping to Germany, postal, IOSS (DDP)
| Item | Amount | Paid when / by | Status |
|---|---|---|---|
| Item price | €71.40 | At checkout | |
| Shipping charged | €5.95 | At checkout | |
| EU flat customs duty €3 × 1 item(s) | €3.00 | At checkout: seller collects and pays | Verified |
| Germany VAT 19% charged at checkout (IOSS) | €14.70 | At checkout: seller collects and pays | Partly verified |
| EU Union handling fee €2 × 1 item(s) | €2.00 | At checkout: seller collects and pays | Partly verified |
| Buyer pays in total | €97.06 | €97.06 at checkout + €0.00 on delivery | |
| Seller must collect & prepay | €19.70 | Duties, taxes and fees you need to build into the price | |
Duties & taxes
The EU's €150 customs-duty exemption for low-value consignments was abolished on 1 July 2026 (Council Regulation (EU) 2026/382). Goods in consignments of €150 or less are now subject to customs duty.
From 1 July 2026 until 1 July 2028, a flat customs duty of €3 per item applies to consignments of €150 or less that are declared under IOSS or sent as postal consignments. Normal tariff rates are expected to apply once the EU customs data hub is ready.
An 'item' means each different tariff sub-heading in the parcel. Example: 1 silk blouse + 2 wool blouses = 2 items = €6. Identical goods can be grouped on one declaration line.
From 1 November 2026 a Union Handling Fee of €2 per distinct item will apply to B2C e-commerce goods arriving from outside the EU, at any value. It is in addition to the €3 duty, cannot be refunded (even on returns), and does not apply to private gifts. The Commission adopted the €2 amount on 21 September 2026, but it still has to pass European Parliament/Council scrutiny and be published in the Official Journal.
Consignments of €150 or less that are neither IOSS nor postal (e.g. courier, buyer pays VAT on import) are outside the €3 regime. Since the duty exemption is gone, they appear to pay the normal tariff rate. Check with your courier.
Above €150, IOSS cannot be used. Import VAT and customs duty (normal tariff rate) are due at import, paid by the buyer (DDU) or prepaid by the seller (DDP via a courier).
UK-origin goods can enter the EU at 0% duty under the EU–UK Trade and Cooperation Agreement if they meet the rules of origin and you give a statement on origin. Goods that are only shipped from the UK (made elsewhere) do not qualify.
Whether preferential origin (UK TCA, CETA) cancels the flat €3 duty has not been confirmed from EU guidance text yet. Assume the €3 applies unless your carrier confirms otherwise.
Who pays: IOSS/DDP vs DDU
For consignments of €150 or less, VAT can be charged at checkout through the Import One-Stop Shop (IOSS), at the buyer's country rate. Marketplaces handle this for sales made through them. Non-EU sellers registering for IOSS themselves generally need an EU-established intermediary.
Without IOSS, import VAT is collected from the buyer on delivery. The postal operator or courier usually adds its own clearance fee.
EU standard VAT rates range from 17% (Luxembourg) to 27% (Hungary), e.g. Germany 19%, France 20%, Italy 22%, Spain 21%, Netherlands 21%, Ireland 23%. Reduced rates apply to some goods (e.g. books).
Carriers & paperwork
From 1 November 2026, product identifiers are required in customs data for B2C distance-sale imports into the EU, at any value.
Etsy says US-bound packages need a 10-digit HTS code and EU-bound packages a 6-digit code. Without one, a package may be delayed or returned.
Platforms
Shopify Managed Markets stopped supporting DDU on 24 August 2026 in every market where it supports DDP, so buyers pay duties and taxes at checkout. To let buyers pay on delivery instead, you must switch Managed Markets off.
Common pitfalls
- Counting parcels instead of items. The €3 duty and €2 fee are charged per distinct tariff line, so a parcel with three different product types pays three times.
- Selling without IOSS means the buyer pays VAT plus a carrier fee on delivery. That is a common cause of refused parcels and bad reviews.
- Assuming the TCA covers goods you didn't make in the UK. Only UK-origin goods qualify.
- Ignoring the €2 handling fee in prices for orders shipped after 1 November 2026.
FAQ
Is there still a €150 duty-free threshold in the EU?
No. It was abolished on 1 July 2026. Consignments of €150 or less under IOSS or sent by post pay a flat €3 customs duty per item until 1 July 2028. Verified Verified
What is the EU handling fee?
A Union Handling Fee of €2 per distinct item, scheduled from 1 November 2026 for B2C e-commerce parcels from outside the EU, at any value. It is in addition to the €3 duty. Partly verified
Sources for this page
- Council Regulation (EU) 2026/382 (abolition of €150 duty relief; €3 per item), EUR-Lex. Accessed 20 Oct 2026. Partly verified
- EU Customs Reform, European Commission – Taxation and Customs Union. Accessed 20 Oct 2026. Partly verified
- Council gives final green light to new customs duty rules for small parcels (11 Feb 2026), Council of the EU. Accessed 20 Oct 2026. Partly verified
- Union Handling Fee (UHF) – 1 November 2026 (published 30 Sep 2026), Revenue (Irish Tax and Customs). Accessed 20 Oct 2026. Verified
- Questions & answers – EUR 3 customs duty guidance (30 Jun 2026), European Commission. Accessed 20 Oct 2026. Verified
- Commission sets Union handling fee at EUR 2 per item (2 Oct 2026), CLECAT (industry association, secondary). Accessed 20 Oct 2026. Verified
- Customs formalities for low value consignments (IOSS), European Commission – Taxation and Customs Union. Accessed 20 Oct 2026. Verified
- Proving originating status and claiming a reduced rate of Customs Duty for trade between the UK and EU, GOV.UK. Accessed 20 Oct 2026. Partly verified
- Guide to the VAT One Stop Shop (IOSS intermediary rules), European Commission. Accessed 20 Oct 2026. Partly verified
- VAT rules and rates (Your Europe) / VAT rates in Member States, European Union. Accessed 20 Oct 2026. Partly verified
- Information for Managing International Shipments, Etsy Help. Accessed 20 Oct 2026. Verified
- Managed Markets is ending Delivered Duty Unpaid (DDU) support (11 Aug 2026), Shopify Changelog. Accessed 20 Oct 2026. Verified