Compliance
Removing VAT Exemptions on Low-Value Imports: What EU Businesses Need to Know
From 1 July 2026, EU imports under €150 are no longer VAT-duty exempt—businesses selling online from outside EU should understand how the new €3 customs duty and product identifier rules will impact cross-border trade.
By NomadicTax Research Team • 6 min read • August 12, 2026
## What Changed 1 July 2026
As of **1 July 2026**, the EU has abolished the VAT/customs duty exemption on **low-value consignments** (distance sales of imported goods, up to **€150**) under new EU Customs Reform rules. ([taxation-customs.ec.europa.eu](https://taxation-customs.ec.europa.eu/news/guidance-and-legal-text-temporary-flat-fee-low-value-imports-which-will-apply-until-1-july-2028-2026-06-08_en?prefLang=sk&utm_source=openai)) A **temporary fixed €3 customs duty per item** is now levied until **1 July 2028**, when the new EU Customs Data Hub is expected to be operable. ([webgate.acceptance.ec.europa.eu](https://webgate.acceptance.ec.europa.eu/portal9/en/news/eu-applies-eu3-customs-duty-item-low-value-e-commerce-consignments?utm_source=openai))
Additionally, from **1 November 2026**, “Product Identifiers” (PIDs) will become **mandatory** for distance sales imports to improve traceability and compliance. ([taxation-customs.ec.europa.eu](https://taxation-customs.ec.europa.eu/news/guidance-and-legal-text-temporary-flat-fee-low-value-imports-which-will-apply-until-1-july-2028-2026-06-08_en?prefLang=sk&utm_source=openai))
## Why This Matters for Digital Nomads, E-Commerce Sellers & Remote Businesses
- **Increased cost & duty**: Small online sellers shipping from non-EU countries must now account for customs duty per item, even for low-value goods.
- **More paperwork**: Sellers or intermediaries must include proper documentation, including the VAT procedure codes (H1, H6, H7) and adhering to new supporting document codes (F48 / F49 / F53) in import declarations. ([webgate.acceptance.ec.europa.eu](https://webgate.acceptance.ec.europa.eu/portal9/en/news/eu-applies-eu3-customs-duty-item-low-value-e-commerce-consignments?utm_source=openai))
- **Compliance risk from missing PIDs**: Starting November, missing or incorrect PIDs may delay customs clearance or lead to fines.
## Practical Actions Businesses Should Take
1. **Review your supply chain & pricing**: Update your pricing to reflect the €3 customs duty where applicable; confirm whether your goods’ value + import duties plus VAT makes the offer still attractive.
2. **Implement new documentation code-flows**: Ensure systems generate correct VAT procedure and supporting document codes (e.g. F48 etc.).
3. **Collect Product Identifier data**: Begin voluntarily using PIDs now, build systems to collect, store, and send PIDs in declarations by November.
4. **Inform customers**: Clearly state duties/import costs and expected delivery delays due to customs procedures.
## Case Example
Suppose a remote seller in Asia ships out a consignment of **three leather wallets** worth **€120 total** to a buyer in Spain (EU). Under the new rules, they will pay **€3 customs duty per wallet** (since there are 3 items), making total duty €9. If PIDs not used when they’re required (from November), that could delay clearance or cause compliance issues. Pricing, delivery cost, and customer expectations need adjustment.
## What to Ask Your Customs/VAT Advisors
- Does your business fall under “distance sales of imported goods” (DSIG)?
- What is your EU VAT registration status, and is IOSS or other special arrangements applicable?
- Do you have the systems to include the new VAT procedure codes and PIDs in declarations?
Takeaway: These changes lower the threshold for duty obligations, require more precise documentation, and shift part of the duty burden to online sellers shipping into the EU. Businesses must update their operations and systems now to avoid interruption and unexpected costs.