European countries are implementing strict rules mandating prepayment of VAT for e-commerce orders. The directive is part of the “Digital Single Market Strategy for Europe" to ensure VAT collection for international online orders. Jet Worldwide offers best-in-class shipping solutions for online orders to Europe and the UK from the US and Canada.
Key Takeaways for Canadian Sellers:
- IOSS Mandatory: Non-EU businesses must collect VAT at checkout for orders under €150.
- 2026 Duty Changes: The €150 duty-free threshold is set to expire; fixed duty fees will apply.
- Direct Shipping: Jet Worldwide enables direct injection from YUL/YVR/YYZ to CDG/LHR to bypass consignee fees.
Table of Contents
- New VAT Rules for European Imports
- Direct Shipping Solutions from Canada
- Update: Removal of €150 Duty-Free Threshold
- Understanding IOSS and EORI
- Common Questions (FAQ)
Non-EU businesses and online sites must now collect EU VAT. Jet helps Canadian sellers ship directly from Canada to the European Union via direct import processes.
Jet Worldwide helps Canadian sellers set up direct shipping from YUL, YVR, and/or YYZ direct to CDG (or LHR for shipments to the UK) for direct import, no consignee import fees, and delivery by leading European carriers. While minimum volumes are necessary, the direct shipping solutions are scalable using your existing warehousing and logistics infrastructure.
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Disclaimer: The information in this blog is for general information only.
Major Update: Low Value Shipment Threshold (2026)
Importing Low Value Shipments to Europe: 2026 Outlook
Historically, shipments valued under €150 were exempt from customs duty. However, upcoming EU customs reforms are changing this landscape.
- No Duty Exemption: There will be no duty exemption for low-value shipments (valued under €150).
- New Fees (July 2026): There is a €3 fixed customs duty per consignment projected for implementation in July 2026 for low-value imports.
- Additional Fee (Nov 2026): An additional €2 fee will also apply starting November 2026.
Note: VAT still applies to all imports to Europe, regardless of these duty changes.
Jet Worldwide Direct Shipping: Canada & USA to EU
Canadian online e-commerce merchants can ship direct to Europe with no charges to the consignee via Jet's direct import to Europe processes. Minimum volumes are necessary.
Marketplaces as the "Supplier"
Among the main changes are provisions for online marketplaces acting as the "supplier." As a supplier, the online marketplace will be held responsible for the collection of VAT for online orders of up to €150. This process is managed through the Import One Stop Shop (IOSS), which simplifies the importation of online goods.
EORI Number vs. IOSS: What is the difference?
An Economic Operators Registration and Identification number (EORI number) is an EU identification number for businesses (economic operators) that import or export goods into or out of Europe. While IOSS applies to online orders to individuals to manage VAT, an EORI number is part of the data set necessary for customs entries for businesses in all EU countries.
The EORI number consists of two parts:
- The country code of the issuing Member State.
- A code or number that is unique in the Member State.
VAT Rules for Imports to the European Union
All imports to the EU are subject to VAT. E-commerce shipments under EUR 150 can import via One-Stop Shop (IOSS) processes that allow sellers and online marketplaces to charge VAT at the point of sale and remit it directly to the authorities.
- Without IOSS: The VAT will be charged to the e-commerce customer by the importing carrier (plus an administrative/pre-payment fee).
- With IOSS: Canadian e-commerce businesses and marketplaces can register for a VAT account in only one EU country to cover sales across the entire EU.
The IOSS applies to online sales to all EU countries and Northern Ireland
EU countries include Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, The Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden. EU VAT rules for Northern Ireland are in the EU-UK Joint Protocol.
Frequently Asked Questions
What is the cheapest option for shipping online orders to Europe?
The cheapest option for sending online orders to Europe depends on the size and weight of your package and service option. Generally, the cheapest option for shipping low volumes of small packages is via Canada Post surface. For larger volumes, consolidating via Jet Worldwide Direct Air Freight offers faster delivery at competitive rates.
How can I get Canada Post surface costs but with faster delivery?
Building a low-cost shipping solution to Europe involves consolidating orders and sending them via direct air freight from YUL, YVR, or YYZ. The challenge is that shipping direct requires minimum volumes to be cost-effective. However, the opportunity of sending direct allows Canadian retailers to scale their sales directly from their Canadian facilities.
Can I benefit from duty-free import to Europe from Canada?
Goods that qualify as Canadian origin under the European Canadian free trade agreement (CETA) can benefit from duty-free import regardless of the value. Read more on Customs Duty calculations.
Do I have to pay VAT for duty-free shipments to Europe?
Yes, VAT applies to all imports to Europe, even if they are duty-free under CETA or the low-value threshold.
Can I ship via DPD to Europe and the UK?
Yes, Jet Worldwide provides access to DPD Europe and the UK. DPD brands include Seur (Spain) and Chronopost (France). Contact our team for details.
Download accompanying PDF Guide
IMPORT CONTROL SYSTEM and DDP TO EUROPE
The implementation of IPC’s ICS2 (Import Control System 2) ensures that entry summary declarations on all parcels entering the EU are made. Jet works with online sellers to offer Delivery Duty Paid (DDP) solutions from the US and Canada.
Jet Worldwide: Global Brand, Local Solutions
- Parcel shipping solutions between the USA/Canada and Europe/UK.
- Delivery VAT and Duty paid import for B2C e-commerce consignments.
- Facilitate IOSS registration exclusively for Jet clients.
