Threshold for EU import duties will be removed in 2028

The European Parliament aims to simplify VAT rules for ecommerce imports and wants to remove the threshold of 150 euros for import duties. Negotiations are still going on, but it has now been decided that the proposed changes will come into effect by March 2028.

It is a well-known fact that the European Commission wants to impose import duties on goods up to 150 euros. In May 2023, this proposal was first published. Since then, the process of getting it adopted by the European Council has been under way.

When importing a product from outside the European Union, purchased from an American or Chinese online seller, for example, a person is required to pay import duties. However, currently orders up to 150 euros are exempted from this obligation.

Many sellers on AliExpress and Temu take advantage of this as with their low product prices they do not need to pay import duties. As a result, hundreds of thousands of shipments from these sellers overload the air transportation market.

According to a study by the European Parliamentary Research Service, the current threshold gives traders an incentive to under-value their goods. They are falsely valuing their goods below the threshold, leading to lower VAT charges and evading customs duties.

Removing the threshold of 150 euros would mean that all imported goods will need to go through the IOSS (import one-stop shop) of the EU. This will lead to lower compliance costs. Additionally, it will reduce an administrative burden for businesses within the EU and make it easier for online stores in the EU to sell imported goods into the EU.

Negotiations are continuing in the European Council. The European Parliament has already voted in favor. The changes should come into effect by 1 March 2028.