Simple Guide: EU Shipping Changes Coming in July 2026

Given the rapid increase in e-commerce goods being imported into the EU, the Commission and Member States have together acknowledged the need for an urgent solution, which will bridge the gap until the setting up of the EU Customs Data Hub in 2028, as part of the EU customs reform

From 1 July 2026, the EU is removing the "tax-free" limit for small orders (formerly called the €150 de minimis). This means that every single parcel you send to the EU will have to pay customs duties, no matter how small or cheap the item is.

The New €3 Fee: What Is Changing

Until the 2028 reform is fully rolled out, EU member states have agreed that a flat rate customs duty of €3 will be applied to items in parcels valued under €150.

Why is this happening?

Currently, many small parcels enter the EU duty-free, which gives overseas sellers a price advantage over local EU businesses who have to pay taxes on everything they sell. By applying this small fee to every item, the EU is 'levelling the playing field', making it fairer for local retailers to compete with international ecommerce stores.

How this is going to be charged:

A €3 fee will be applied per item, which specifically means per HS Code. If that feels a bit confusing or you want to see how this works in practice, here’s a quick example to clear the air:

• Imagine you're a retailer shipping a parcel containing 1 silk blouse and 2 wool blouses. Because they have different HS Codes, that parcel is considered to have two distinct items. In this case, €6 in customs duty would be paid (€3 for the silk item + €3 for the wool item).

Shipping via Couriers: Two Ways to Pay

When you ship with companies like FedEx, or UPS, you usually have two choices for how these taxes are paid. This choice is the biggest factor in whether your customer has a good experience.

Option 1: You Pay Upfront (DDP)

This is called "Delivered Duty Paid". In this scenario, the sender (the business) pays for the duties and taxes before the parcel is sent.

• The Benefit: The parcel zooms through customs because the bill is already settled.
• The Result: Your customer gets their package with no surprise bills at their door.

Option 2: Your Customer Pays Later (DDU)

This is "Delivered Duty Unpaid". You ship the item, and the customer has to pay the taxes when the parcel arrives in Europe.

• The Risk: While the shipping looks cheaper at first, your customer might be shocked by a surprise bill for the €3 duty, VAT, and a carrier handling fee.
• The Result: Customers sometimes refuse to pay these fees, meaning the parcel gets sent back to you with additional fees or abandoned.

What About the Post?

At this stage, we don't know exactly how national postal services (Australia Post) will handle these 2026 changes or how they will collect that €3 fee. We’ll update you as soon as they release their plan.

The "Must-Have" Checklist for Your Shipments

To get through customs without delays, you will need three important identification numbers:

1. IOSS Number: Used for small sales (under €150) to handle taxes easily at checkout.
2. EORI Number: A mandatory ID for any business shipping into the EU.
3. HS Codes: A 6-digit code that tells customs exactly what is in the box. This is now vital for calculating the correct taxes.

How to Fill Out Your Paperwork Correctly

To avoid your parcel being held or sent back, you must be 100% accurate on your commercial invoice. Make sure to include:

• Tax info, ABN and Identification Numbers: Your Australian business details.
• Reason for export: Usually "Sale".
• For each item included in the shipment:
• A clear description: Say "Cotton T-shirt," not just "Gift" or "Clothes."
• The correct HS Code: Use our tool to find the right number.
• Quantity & Value: How many are inside and what they cost.
• Country of manufacture: Where the item was made.

How Interparcel Helps You

We’ve built our platform to make this whole process simple so you can keep shipping without any headaches.

• Pre-pay Taxes easily: On our platform, look for the ‘Prepay Duty & Taxes’ tag when booking with FedEx or UPS. You can choose to pay the taxes yourself, so your customer doesn’t have to.

• Full Cost Breakdown: You can click ‘Show details’ in the booking process to see exactly what the duties and taxes will be before you pay for the shipment.

• HS Code Tool: We have a built-in tool to help you find the right codes for your items, ensuring you aren't overcharged.

• Dedicated Fields: We have spots for you to save your IOSS and EORI numbers so they are automatically added to your paperwork. You can easily store these identifiers in your account settings, so they're ready to go for every shipment to the EU.

The Bottom Line

Shipping to the EU is changing, but it doesn't have to be difficult. By being clear with your customers and using the right tools to prepay taxes, you can keep your international sales growing smoothly.

If you have any questions about these changes or need assistance, our team is ready to help. You can reach us on 1300 006 031, on live chat, or send us an email at help@interparcel.com.au