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front page » article » news » EU Low Value Parcel Rules Adjusted: Shipments under €150 will incur a fixed fee of €3 per item.

EU Low Value Parcel Rules Adjusted: Shipments under €150 will incur a fixed fee of €3 per item.

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FedEx released an update to EU VAT rules on April 21. According to FedEx's announcement, the EU VAT rules page, and public information from Reuters and the European Council, since... July 1, 2026 Starting from, the value is lower than 150 euros Imported small packages will be applicable €3 fixed feeFor cross-border e-commerce sellers, independent websites, and platform sellers shipping to Europe, this means the cost structure of low-value parcels will be adjusted.

Key points of rule changes

  • IOSS still applies. IOSS handles VAT declarations and collections for imported B2C shipments of €150 or less.
  • Low-value exemptions will be tightened. The European Council has agreed to impose a levy on small parcels valued at less than €150, effective July 1, 2026. €3 fixed duty/customs fee.
  • Fees are charged based on the line of declaration or the type of goods. If a shipment contains multiple different HS codes, the cost may be split by commodity type rather than calculated as a single charge for the entire shipment.
  • Shipments valued at €150 or more are not affected by this adjustment. This change applies to low-value small parcels, not all EU-imported goods.

The relationship between IOSS and VAT

FedEx's public statement indicates that the purpose of IOSS is to simplify the VAT declaration and collection process for low-value imported shipments. For B2C e-commerce shipments of €150 or less, sellers or platforms can collect VAT at the sales stage, and the carrier can provide the IOSS number at customs declaration.

The changes brought about by this mechanism are:

  • The processing path for VAT is clearer;
  • The administrative processes at the import stage are more centralized;
  • However, IOSS does not mean that all import costs will disappear.

Under the new rules, low-value shipments will still face additional fixed customs fees.

Impact on cross-border e-commerce business

1) Costs of low-priced European orders will increase.

For independent websites, platform sellers, and dropshipping businesses that have long operated in the European market, the cost model, which was originally based on shipping costs and VAT, will now need to include a fixed fee of 3 euros. This will further compress profit margins for low-priced orders.

2) The cost of mixed shipments may be higher than expected for a single shipment.

Publicly available information indicates that this fee may be calculated based on the type of goods or the line of declaration. If the same shipment contains multiple different categories of goods, the final fee may not necessarily be equal to "3 euros per shipment".

3) Door-to-door pricing for consumers needs to be recalibrated.

Sellers who still use the "tax-inclusive door-to-door" model should re-divide the pricing for European routes, listing VAT, fixed customs fees, and any potential upfront costs separately to avoid disputes during customs clearance.

Recommended countermeasures

  1. Organize the SKUs for the European route. First, identify products that consistently cost less than 150 euros.
  2. Identify the responsible party for IOSS. Whether the platform collects the payment, the seller has their own IOSS, or the carrier assists with the declaration needs to be clearly defined in advance.
  3. Adjust the pricing model. In addition to freight costs, VAT, fixed fees, and any potential upfront costs should be listed separately.
  4. Inform customers in advance. European consumers are quite sensitive to changes in door-to-door delivery fees, so fee explanations should be provided upfront.

in conclusion

The focus of this adjustment is not whether IOSS will continue to exist, but rather that the tax logic for low-value parcels in Europe is changing. For cross-border businesses in Europe, pricing, customs clearance instructions, and customer communication methods all need to be adjusted accordingly.

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