EU E-commerce Customs: New €2 Handling Fee from 1 November 2026, on Top of €3 Duty
The European Union is introducing significant changes to customs charges on e-commerce imports.
As of 1 November 2026, a new €2 Union handling fee (UHF) is expected to apply to goods imported into the European Union through distance sales, in addition to the temporary €3 customs duty introduced on 1 July 2026.
In preparation for this change, the European Commission’s Directorate-General for Taxation and Customs Union (DG TAXUD) issued updated guidance dated 5 October 2026, clarifying how the two charges will apply simultaneously, their respective scope, VAT treatment and customs reporting requirements.
The new measures form part of the broader EU customs reform, aimed at modernising customs procedures, strengthening controls on e-commerce imports and addressing the growing volume of goods shipped directly to EU consumers from non-EU countries.
Although both charges are calculated per customs declaration item, they differ significantly in their legal nature, scope, VAT treatment and refund rules.
The Temporary €3 Customs Duty: Applicable Since 1 July 2026
Since 1 July 2026, the previous customs duty exemption for consignments with an intrinsic value not exceeding €150 has been abolished.
Under Council Regulation (EU) 2026/382, a temporary flat-rate customs duty of €3 per item applies to qualifying low-value imports.
Duration: The temporary duty is scheduled to apply until 1 July 2028, when the EU Customs Data Hub for e-commerce is expected to become operational. An extension may be considered if the necessary systems are not ready.
Value: A flat-rate customs duty of €3 is calculated per customs declaration item.
Scope: The temporary €3 customs duty applies to goods imported into the EU in consignments with an intrinsic value not exceeding €150, including:
- Distance sales of imported goods declared under the Import One-Stop Shop (IOSS) scheme;
- Qualifying postal consignments covered by the relevant customs arrangements;
The measure may also cover alcoholic products, perfumes and tobacco products, which were excluded from the former low-value customs duty relief, provided the relevant conditions are met.
Basis: The duty is calculated by reference to the customs declaration item.
A customs declaration item may include several individual products where they share the relevant customs characteristics, including tariff classification and origin, and are correctly declared together.
Consequently, a parcel containing several different types of goods may give rise to multiple €3 charges.
Nature: The €3 amount constitutes a customs duty.
It is a fiscal charge on imported goods rather than a fee paid in exchange for a specific customs processing service.
Preferential origin arrangements require particular attention. Under the Commission’s guidance, qualifying IOSS imports remain subject to the temporary flat-rate duty, whereas preferential treatment may be relevant to imports declared under standard customs procedures.
VAT Regime and Refunds: The €3 charge constitutes a customs duty, not a service fee. Its introduction does not change the existing VAT treatment of low-value imports.
Under the IOSS scheme, imports remain exempt from import VAT. For qualifying postal consignments imported without IOSS, the €3 duty may form part of the import VAT taxable amount under the applicable VAT rules.
Repayment or remission of the €3 customs duty remains subject to the general customs rules. Returning goods does not automatically entitle the importer to a refund, as the specific customs declaration invalidation procedure previously available for certain returned low-value goods no longer applies.
The New €2 Union Handling Fee – Expected from 1 November 2026
A second charge is now approaching: the Union handling fee (UHF), introduced under Article 20 of Regulation (EU) 2026/2108 establishing the new Union Customs Code.
Duration: The Union handling fee is scheduled to apply from 1 November 2026, subject to publication of the EU delegated act in the OJEU and a 10-day implementation period.
Unlike the temporary €3 customs duty, the UHF is not limited to a transitional period.
From 1 July 2028, a lower fee is envisaged for qualifying distance sales from the new customs warehouses for distance sales, with the applicable amounts to be reviewed by the European Commission.
Value: The European Commission adopted the delegated act on 21 September 2026, establishing the €2 fee per customs declaration item.
This charge is separate from any customs duties and VAT payable on the imported goods.
Scope: The Union handling fee applies to qualifying distance sales of goods imported into the EU from third countries or territories.
Unlike the temporary €3 customs duty, its scope is not limited to consignments with an intrinsic value of €150 or less. It may therefore apply to both low-value and higher-value e-commerce imports.
The fee is relevant to online retailers, marketplaces and other businesses involved in distance sales of imported goods, irrespective of whether the IOSS scheme is used.
Basis: The Union handling fee is calculated per customs declaration item, rather than automatically per physical product or consignment. This is the same unit of calculation used for the temporary €3 customs duty.
Where a consignment contains several separately declared items, more than one €2 handling fee may be payable.
Nature: The Union handling fee is a customs-related administrative charge intended to contribute towards the costs incurred by customs authorities in processing imported distance sales goods.
These activities include customs data processing, risk analysis and controls.
It is legally distinct from a customs duty, even though both charges may arise on the same import.
VAT Regime and Refunds: The VAT treatment is one of the key differences between the two charges.
According to the Commission’s guidance, the UHF is treated as an incidental expense connected with the supply of goods and must be included in the relevant VAT taxable amount.
The treatment depends on the import VAT scheme used:
- IOSS: for eligible consignments not exceeding €150, import VAT is exempt. No VAT is charged on the UHF at importation. However, where the fee is charged to the customer at the time of sale, it must be included in the taxable amount reported through IOSS.
- Special arrangements: import VAT is collected from the customer by the postal operator or carrier. The UHF must be included in the import VAT taxable amount.
- Standard import VAT procedure: the UHF must be included in the import VAT taxable amount, including for consignments exceeding €150.
A key distinction from the €3 customs duty is that the Union handling fee is non-refundable.
According to the Commission’s guidance, the fee remains payable even where the goods are subsequently returned, refused or the customs declaration is invalidated after acceptance.
Any adjustment or refund of VAT associated with the fee must be considered separately under the applicable VAT rules.
What Qualifies as a Distance Sale of Imported Goods?
Both measures are closely linked to the EU definition of distance sales of imported goods.
Under Article 14(4)(2) of the EU VAT Directive, as referenced by the new Union Customs Code, a transaction generally qualifies where the following conditions are met:
- The goods are supplied by a taxable person, including an online marketplace acting as a deemed supplier.
- The customer is a non-taxable person, such as a private consumer, or another qualifying customer whose intra-Community acquisitions are not subject to VAT.
- The goods are located outside the EU customs territory at the time of supply.
- The goods are dispatched or transported to the customer by or on behalf of the supplier, including where the supplier indirectly arranges the transport.
The rules may also cover deliveries into special fiscal territories forming part of the EU customs territory.
New means of transport and goods supplied after installation or assembly are excluded from the definition of distance sales of imported goods.
How Will the Two Charges Apply Together?
From the expected introduction of the UHF on 1 November 2026, businesses selling goods to EU consumers from non-EU countries will need to account for two distinct charges.
For qualifying low-value consignments, the combined amount will generally be €5 per customs declaration item: €3 in temporary customs duty and €2 in Union handling fee.
For consignments exceeding €150, the €2 UHF will apply alongside the ordinary customs duties calculated according to the relevant tariff rules.
However, the temporary €3 customs duty does not necessarily apply to all low-value imports. Goods eligible for preferential tariff treatment under international trade or customs union agreements may benefit from different customs duty treatment where the applicable conditions are met and IOSS is not used.
Where IOSS is used, the temporary €3 customs duty applies to qualifying consignments even where preferential tariff treatment might otherwise have been available.
The UHF remains applicable to qualifying distance sales irrespective of such preferential customs duty treatment.
Both charges are generally payable by the person liable for the customs debt or fee under the applicable customs rules. Depending on the customs arrangements, this may involve the online seller, marketplace, carrier or customs representative acting as declarant.
Customs Declarations and New Product Identification Requirements
The European Commission’s guidance of 5 October 2026 also provides detailed explanations of the customs procedures accompanying these changes.
These include the appropriate H1, H6 and H7 customs declarations, the competent customs authorities, specific TARIC codes, customs debt calculation, guarantees and repayment procedures.
The guidance also clarifies the responsibilities of declarants, including online sellers, marketplaces, carriers and customs representatives, and introduces anti-abuse provisions designed to prevent circumvention of the new measures through artificial arrangements or the grouping of consignments.
In addition, new product identification requirements will become mandatory from 1 November 2026 for qualifying distance sales of imported goods in consignments not exceeding €150. These requirements, which could be applied voluntarily from 1 July 2026, involve providing product identifiers used by online merchants and manufacturers to improve traceability and customs risk controls.
The practical reporting requirements and relevant customs codes are explained in detail in the Commission’s guidance.
E-commerce businesses should ensure that the customs information provided to their logistics partners and customs representatives is complete and accurate, particularly regarding product descriptions, tariff classifications, country of origin and product identifiers.
What Should E-commerce Businesses Prepare For?
The combined financial and administrative impact of the new measures could be significant, particularly for businesses processing high volumes of low-value orders.
Online retailers, marketplaces and importers should review their existing customs and VAT arrangements and consider the following actions:
- Assess which import flows fall within the scope of the temporary €3 duty, the Union handling fee or both.
- Review product pricing, shipping costs and customs clearance arrangements.
- Verify the number of customs declaration items generated by their product and fulfilment structures.
- Examine the VAT treatment of charges passed on to customers.
- Update customs data and product identification processes.
- Evaluate the impact of non-refundable handling fees on returns and refund policies.
- Review the suitability of existing IOSS and import arrangements.
For international e-commerce operators, these measures may also influence broader decisions regarding EU warehousing, fulfilment models and supply chain organisation.
As the EU Customs reform progresses towards the introduction of the EU Customs Data Hub in 2028, businesses should also anticipate further changes to the customs treatment of e-commerce imports.
How Can BtoBnice Help?
BtoBnice supports EU and non-EU businesses with cross-border VAT compliance, e-commerce VAT obligations, OSS and IOSS-related matters and international customs advisory services.
Our expertise helps online sellers and international businesses understand their VAT and customs obligations, anticipate regulatory changes and optimise their cross-border operations.
Contact BtoBnice for tailored advice on EU e-commerce VAT and customs compliance: contact@btobnice.com
