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.
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 |
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.
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.
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?"
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.
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.
Connect with our E-commerce Logistics Team