⚡ Quick Takeaways for 2026
- CETA Advantage: Most Canadian-origin goods enter the EU 100% duty-free.
- 2026 Policy Shift: The €150 duty-free threshold for e-commerce is being removed. All orders now require VAT and potential duties.
- IOSS Benefit: Simplifies VAT collection at checkout for orders up to €150, ensuring no hidden fees for customers.
After more than seven years in the making, the implementation of the Comprehensive Economic and Trade Agreement (CETA) continues to create massive opportunities for Canadian exporters to reach over 450 million European consumers.
Shipping Online Orders to the European Union (2026 Update)
While online orders shipped to EU countries formerly enjoyed a duty-free threshold, 2026 marks a significant shift in EU customs policy. While VAT is assessed on all imports, new regulations are streamlining how duties are applied to low-value e-commerce goods.
| Feature | Value Under €150 | Value Over €150 |
|---|---|---|
| VAT (Value Added Tax) | Applied at point of sale (IOSS) | Applied at time of import |
| Customs Duty | New 2026 fees apply | Duty-free if CETA originating |
Understanding the IOSS (Import One Stop Shop)
Modern marketplaces (Shopify, eBay, BigCommerce) are now often deemed the "supplier." This means the marketplace is responsible for collecting VAT on orders up to €150. This process, known as IOSS, avoids "surprise" fees for your customers upon delivery. Explore our guide on EU VAT payment.
Expert Tip: Goods qualifying as "Canadian Origin" under CETA rules can benefit from duty-free status even if the value exceeds €150.
The CETA Advantage: Scaling Canadian Exports
CETA is more than a trade deal; it is a competitive edge. It removes tariffs on 98% of Canadian goods and reduces the regulatory burden for SMEs looking to test European markets.
🤖 Use AI to Calculate Your CETA Benefit
Copy and paste the prompt below into ChatGPT or Gemini to analyze your product's eligibility:
"I am a Canadian business shipping [INSERT PRODUCT] to France. Based on CETA Rules of Origin for 2026, what specific documentation do I need to qualify for duty-free entry?"
Simplified Origin Statements (Under $3,300 CAD)
For shipments entering Canada from the EU valued under $3,300 CAD, the formal "Certificate of Origin" is waived. A simple statement on the commercial invoice is sufficient. This alignment with CUSMA standards makes transatlantic trade as easy as shipping across the US border.
Shipping Shopify Orders from Canada to the EU
Jet Worldwide is leading the way in Shopify-integrated shipping solutions. Our team develops "self-fulfillment" models that allow Canadian brands to ship directly to the entire EU with fully integrated IOSS and CETA compliance.
- Open Tenders: CETA grants Canadian companies access to EU government procurement.
- Regulatory Harmony: Mutual recognition of certificates avoids duplicate testing costs.
- Professional Mobility: Easier temporary staff movement between the EU and Canada.
