EU €2 Handling Fee and €3 Customs Duty (2026)

Table of content

Key takeaways

Since 1 November 2026, the EU has charged a €2 Union handling fee per item on goods sold by distance sales and imported into the EU, under Delegated Regulation (EU) 2026/2152.
A temporary €3 customs duty per item has applied since 1 July 2026 to consignments worth up to €150 and runs until 1 July 2028.
An item means goods with the same tariff classification, so 5 identical T-shirts pay €3 duty, not €15.
The declarant pays both charges; the handling fee is part of the VAT taxable amount.
Product identifiers have been enforced since 1 November 2026 for consignments up to €150.
The new Union Customs Code, Regulation (EU) 2026/2108, is in force and phases in the EU Customs Data Hub by 1 July 2028.

In short: Since 1 November 2026, the EU has charged a €2 Union handling fee per item on goods sold by distance sales and imported into the EU. It comes on top of the temporary €3 customs duty per item on parcels worth €150 or less, which has applied since 1 July 2026. Product identifiers have also been mandatory since 1 November.

Updated November 2026: The €2 fee now applies. Commission Delegated Regulation (EU) 2026/2152, published in the Official Journal on 22 October 2026, sets the fee and applies from 1 November 2026. This guide also reflects the Commission's guidance of 5 October 2026.

What changed for low-value parcels on 1 November 2026?

Since 1 November 2026, three things apply to goods sent from outside the EU to EU consumers: a €3 duty, a €2 handling fee and product identifiers. The handling fee and the identifiers are the new parts.

The Commission's customs reform page announced: "From 1 November 2026, the EU will apply the €2 Union handling fee" (European Commission, EU Customs Reform). Its guidance adds that the fee applies "per item", is not based on value, and covers goods sold in distance sales, including consignments above €150 (Commission guidance, 5 October 2026).

The fee amount is set by Commission Delegated Regulation (EU) 2026/2152 of 21 September 2026. It was published in the Official Journal on 22 October 2026, entered into force on that day and applies from 1 November 2026 (Official Journal, EUR-Lex).

Key dates at a glance

Date	What happens	Applies to
30 June 2026	€150 customs duty exemption ends	Low-value consignments
1 July 2026	Temporary €3 customs duty per item starts; product identifiers voluntary	Distance sales in consignments up to €150
1 November 2026	€2 Union handling fee per item; product identifiers enforced	Fee: all distance sales imports. PIDs: consignments up to €150
2027	EU Customs Authority set up in Lille	Customs administration
1 July 2028	€3 duty ends; normal duty rates apply; EU Customs Data Hub mandatory for e-commerce	Distance sales imports

Sources: EU Customs Reform page, Commission news of 8 June 2026 and Commission guidance.

How does the €3 customs duty work?

It is a flat €3 per item in a consignment worth up to €150. It applies from 1 July 2026 until 1 July 2028, under Council Regulation (EU) 2026/382 (EUR-Lex).

An "item" is not a single unit. It means goods with the same tariff classification. The Commission's own example: a parcel with 5 T-shirts pays €3, while a parcel with 1 T-shirt and 1 watch pays €6 (European Commission).

It applies whatever VAT scheme you use: IOSS, the special arrangements or standard import VAT.
Goods covered by preferential trade agreements are excluded only if VAT was not collected through IOSS and the goods are declared in an H1 declaration.
The declarant pays: the seller, the importer, an IOSS holder or their indirect representative. The Commission says the duty "is not a tax on consumers".

The Council said the duty covers parcels from sellers registered for IOSS, which it put at 93% of EU e-commerce flows (Council of the EU). The Commission's June 2026 guidance applies it across VAT schemes, so check the current text for your flow.

How does the €2 Union handling fee work?

It is a fixed, non-refundable €2 per item. The fee is incurred when the customs declaration is accepted, and the declarant owes it (Commission guidance).

Scope: goods sold in distance sales, including consignments above €150.
Duration: it is not time-limited, unlike the €3 duty.
Declaration: declarants must add TARIC additional code Y126.
Later change: from 1 July 2028, a lower amount applies to goods sold from a customs warehouse for distance sales.

The fee and the duty are separate charges. The Council's December 2025 release already said the handling fee was distinct from the €3 duty (Council of the EU).

Is the handling fee subject to VAT?

Yes. The Commission treats the handling fee as part of the VAT taxable amount, because it is an incidental expense of the supply (Commission guidance).

IOSS sales: no import VAT is due on the fee at the border. If you charge the fee to the customer, include it in your IOSS VAT return.
Special arrangements and standard import: the fee is included in the base for import VAT. VAT on the fee is refunded if the goods are returned.

If you use IOSS, review your checkout prices now. A fee charged on to the customer changes the VAT you report. Our guide to the Import One Stop Shop (IOSS) explains how IOSS returns work.

What product identifiers do sellers need?

Each item in a distance-sale consignment up to €150 needs product identifiers (PIDs). They were voluntary from 1 July 2026 and have been enforced since 1 November 2026 (Commission guidance).

A merchant PID (code C127).
A non-standardized manufacturer PID (code C128).
A standardized manufacturer PID, such as an EAN, where one exists (code C129). Code Y081 states that none exists.

Your SKU data must reach your carrier or customs broker. Missing identifiers can hold up clearance.

Which customs declaration applies to my parcels?

It depends on value and the type of goods (Commission guidance):

H7: only for distance-sale consignments up to €150. Not for prohibited, restricted or excise goods.
H6: voluntary for consignments up to €1,000 that are not restricted or excise goods.
H1: required above €150, for restricted or excise goods, and for preferential tariff claims without IOSS.

If you use IOSS, you cannot claim a preferential tariff rate on those goods.

What does the EU customs reform change after 2026?

The new Union Customs Code, Regulation (EU) 2026/2108, was adopted on 16 September 2026 and has entered into force (EUR-Lex). It is being phased in (Commission press release).

The EU Customs Authority, based in Lille, will be set up in 2027. The EU Customs Data Hub becomes mandatory for e-commerce from 1 July 2028. On that date the €3 duty ends and normal duty rates apply to each type of good (EU Customs Reform).

What should non-EU sellers and marketplaces do now?

Treat the €2 fee and €3 duty as part of your landed cost. Both now apply, so check that your data meets the rules in force since 1 November 2026.

Count items per parcel by tariff classification, not by units.
Add product identifiers to every SKU you ship to EU consumers.
Agree with your carrier who acts as declarant and who pays the duty and fee.
Decide on pricing: absorb the fee or pass it on at checkout.
Update your VAT reporting if a passed-on fee becomes part of your IOSS sales.
Check your EORI and IOSS details; see what an EORI number is.

For the VAT side of selling into the EU, read EU VAT for online sellers in 2026 and what import VAT is.

Sources

How Taxually handles this

Taxually's CrossTax manages EU VAT registrations and files standard VAT, OSS and IOSS returns, so the VAT side of your EU imports stays consistent across countries. The €3 duty and €2 handling fee themselves are customs charges owed by the declarant on your customs declaration.

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Author

Taxually Editorial Team

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Content team

The Taxually Editorial Team writes Taxually's guides and news on VAT, sales tax, e-invoicing and environmental taxes for online sellers and growing businesses. Articles are based on official sources, such as national tax authorities and the European Commission, and aim to explain complex rules in plain language.

FAQ

Frequently asked questions

What is the EU €2 handling fee?

It is a fixed €2 Union handling fee per item on goods sold by distance sales and imported into the EU. It has applied since 1 November 2026 under Delegated Regulation (EU) 2026/2152, is non-refundable and is owed by the customs declarant.

Is the €3 EU customs duty charged per parcel or per item?

Per item. An item means goods with the same tariff classification. Five T-shirts in one parcel pay €3; a T-shirt and a watch pay €6.

How long does the €3 customs duty apply?

From 1 July 2026 until 1 July 2028. After that, normal customs duty rates apply to distance sales, and the EU Customs Data Hub becomes mandatory for e-commerce.

Does the €3 duty apply if I do not use IOSS?

According to the Commission's guidance, yes. It applies to distance sales in consignments up to €150 whatever VAT scheme is used: IOSS, the special arrangements or standard import VAT.

Is VAT charged on the Union handling fee?

Yes, the fee is part of the VAT taxable amount. Under IOSS, no import VAT is due on it at the border, but a fee charged to the customer must be included in the IOSS return.

Who pays the €3 duty and the €2 fee?

The declarant: the seller, importer, IOSS holder or their indirect representative. The Commission says the duty is not a tax on consumers.

Are product identifiers mandatory for EU imports?

Yes, for distance-sale goods in consignments up to €150. They were voluntary from 1 July 2026 and have been enforced since 1 November 2026.

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EU €2 Handling Fee and €3 Customs Duty on Small Parcels: What Changed on 1 November 2026

Since 1 November 2026, a €2 Union handling fee per item has applied to EU distance-sale imports, on top of the €3 per-item customs duty on parcels up to €150. How both work, VAT treatment, product identifiers and what sellers should do.