Key facts
- The European Union will end the tariff exemption for e-commerce parcels under 150 euros.
- This change will take effect on July 1, 2026.
- The policy aims to create a level playing field for e-commerce and traditional retail.
- Chinese e-commerce platforms are expected to be impacted by this change.
- Goods valued under 150 euros are currently exempt from customs duties.
- The new rules will subject nearly all imported goods to duties and VAT.
- The EU seeks to harmonize tax collection and capture missed revenues.
Effective July 1, 2026, the European Union will discontinue the tariff exemption currently applied to cross-border e-commerce packages valued at less than 150 euros. This significant policy shift is designed to foster a more balanced competitive landscape, addressing disparities between online sellers and established physical retailers. The removal of this exemption is anticipated to have a notable impact on numerous e-commerce businesses, especially those based in China that have leveraged the low-value import threshold to reach EU consumers.
The current system allows goods under 150 euros to enter the EU without customs duties, a provision that has benefited online platforms by reducing costs for both sellers and buyers. However, this has also led to concerns that it disadvantages local businesses, which must contend with VAT and other taxes on their sales. The EU's decision aims to harmonize tax collection and ensure that all goods entering the market are subject to appropriate duties and taxes, regardless of their point of origin or value below the new threshold.