EU Abolishes Low Value Exemption Raising Sourcing Fees for Small Cargo
Procurement teams face a new flat duty of three euros per line item on all imports valued below 150 euros.
Import One Stop Shop
Regulatory Framework
Electronic tax portals designed by the European Union consolidate the calculation, collection, and payment of value added tax on distance sales of imported low-value goods to consumers. Known as the import one stop shop, this digital system applies to consignments with an intrinsic value of 150 euros or less. It bypasses the traditional border tax collection point, moving the fiscal obligation to the point of sale.
The arrangement stops applying to goods that are subject to excise duties or to shipments exceeding the specified monetary value.
Operational Mechanism
Registration on the digital portal allows non-resident sellers to charge the correct local tax rate at the digital checkout. When utilizing the import one stop shop, the online seller collects the tax directly from the consumer during the transaction phase. The seller then submits a single monthly electronic tax return covering all sales made to consumers across all member states.
This consolidated payment is distributed to the respective tax authorities by the member state of registration.
Trade Benefit
Customs clearance procedures at the border run faster when the tax has already been collected and declared electronically. This pre-payment eliminates unexpected postal or carrier fees for consumers upon delivery, which reduces the rate of package rejection. Cargo shipments benefit from accelerated processing lanes at major airports and postal hubs.
The simplified declaration lowers the administrative burden for international logistics providers and improves transit times. By removing the need for customs agents to calculate and collect individual payments upon arrival, the entire entry workflow is completed within hours instead of days, which maintains the rapid delivery schedules expected by modern online buyers.