EU Commission Explains How the New EUR 3 Customs Duty for Low Value Goods Will Be Calculated

The EU Commission has only recently issued long-awaited Technical Guidelines considering how the EUR 3 customs duty is going to be levied, reported, and calculated for low-value imports. As most of the e-commerce vendors are aware, starting on July 1, 2026, a new EUR 3 customs duty is going to be levied on low-value imports. 

Calculation of EUR 3 Customs Levy

Before the issuance of the technical guidelines, it was unclear how the new flat-line customs duty of EUR 3 is going to be calculated and reported. One of the important questions that was pending clarification from the Commission was related to the calculation of the taxable amount of the LVG from the moment the EUR 3 duty kicks in. 

Clarification from the Commission

The technical notice explains that the EUR 3 customs duty arises at the moment when the customs declaration for clearance of LVG is released by the respective customs authorities. Under the IOSS regime, VAT on the LVG is collected at the point of sale(point of purchase). 

Following this logic, the customs duty cannot be levied at the point of sale, only later(since its dependable on the customs clearance). 

For IOSS-registered vendors, the EUR 3 customs duty isn’t part of the taxable amount, as it is levied only later. Practically meaning that the taxable amount doesn’t include EUR 3 customs duty, and the customs duty is VAT-free for this category of vendors. 

Customs Duty and Other Import Arrangements 

Special Arrangements 

In cases where postal operators or freight carriers collect import VAT under the special arrangements scheme, VAT is due at the point of importation. In this case, the EUR 3 customs duty is an integral part of the taxable amount used for VAT calculation. 

In this case, VAT is applied to the customs duty.

General Imports

Taxable persons who import LVG under the standard import procedure should use the same tax calculation logic as importers operating under the special arrangements scheme. 

The EUR 3 customs levy is included in the import tax base, and as such, VAT is also levied upon it.