European countries are implementing rules that make importing e-commerce more transparent and consistent across borders. For all orders, it is now mandated that VAT be collected at the point of checkout. Goods can then be cleared using a streamlined "green channel" for faster processing and, most importantly for e-commerce sellers, zero consignee fees.
Value-added tax (VAT) is a consumption tax added to the price of goods and services in the European Union (EU). In the context of e-commerce imports, VAT is applied to goods purchased from non-EU sellers and imported into the EU.
Jet Worldwide offers a comprehensive suite of shipping services designed to help e-commerce businesses efficiently and reliably deliver their goods to customers across various European countries.
Importing Low-Value Shipments to Europe: 2026 Update
The End of the €150 Threshold: What It Means for You
One of the most significant changes in recent EU customs policy is the practical elimination of the "low-value" duty-free threshold. Historically, many shippers relied on the €150 limit to avoid the cost and complexity of duty structures. Europe will impose a minimum €3 per shipment charge (July 2026).
The €3 duty for parcel imports will be multiplied by each distinct item category (based on tariff sub-headings) contained within the parcel.
Example Calculation:
- The Order: 4 silk blouses + 2 wool blouses + 1 pair of leather shoes
- The Assessment: Silk and wool have different tariff sub-headings, meaning there are two distinct categories in the box.
- The Cost: 3 categories x €3 = €6 total customs duty
These temporary fees are intended as a bridge to the comprehensive 2028 Customs Reforms.
Industry experts warn that these fixed costs risk hollowing out the Import One-Stop Shop (IOSS) scheme by making the "simplified" route more expensive and complex than standard customs procedures. If charges cannot be collected digitally, the burden may revert to couriers, reintroducing "cash-on-delivery" delays and eroding the seamless checkout experience IOSS initially promised.
Understanding IOSS and Simplified VAT Reporting
The VAT rate applied to imported goods depends on both the country of origin and the destination country. Generally, the VAT rate applied to imported goods matches the domestic VAT rate for similar items.
Import One-Stop Shop (IOSS) is an EU-wide system that streamlines the process of collecting and remitting VAT on e-commerce imports. Non-EU sellers registered under IOSS can collect and remit VAT on their sales directly to EU customers.
Because the VAT is collected at the point of sale, the seller simply remits the total to the EU. Customers do not need to pay surprise VAT fees upon delivery, allowing sellers to offer a highly seamless shopping experience.
Green Channel Import and IOSS Quarterly Reporting
IOSS functions as a quarterly filing submitted to a tax authority in the same format as standard VAT OSS. It allows Canadian and US sellers to register in one single EU country while legally selling across the entire EU bloc. This means one set of reporting and one consolidated payment.
Read More: Shipping Shopify Orders to Europe from Canada
Shipping to Europe: A Major Opportunity for E-commerce
The import regiment into Europe presents a massive growth opportunity. European consumers are accustomed to paying VAT, and charging it transparently at checkout actually builds brand credibility.
Resource: Useful information regarding import duty calculations
Furthermore, knowing your goods will be delivered to your customer without hidden import fees is a massive competitive advantage. Contact our team to see how you can build a direct shipping solution to the European Union and the UK.
VAT Rules for E-commerce Imports from Canada
Note: Registration for IOSS is not mandatory for e-commerce sellers shipping from North America to a specific country. A seller shipping exclusively to France from Quebec, for example, can choose to pay the VAT at the time of import and bypass IOSS registration entirely.
The IOSS Process and Portal
For e-commerce shipments valued under €150, IOSS allows sellers and online marketplaces to charge VAT at the point of sale and remit it directly to the authorities.
- If the IOSS is not utilized, the importing carrier will charge the VAT to the e-commerce customer upon delivery (which usually includes an added administrative or pre-payment fee).
- Canadian e-commerce businesses and marketplaces only need to register for a VAT account in a single EU country, rather than registering in every country they ship to.
VAT Collection by Marketplaces and Sellers
Online marketplaces or direct-to-consumer (DTC) sellers are responsible for collecting VAT for orders up to €150. Merchants using multiple marketplaces must keep accurate sales records corresponding to the IOSS number or customs declarant used for each transaction.
Coverage Across All EU Countries
The IOSS applies to online sales spanning all EU countries, including Austria, Belgium, France, Germany, Italy, Spain, and Sweden, among others. EU VAT rules for Northern Ireland are established separately under the EU-UK Joint Protocol.
For official details on IOSS and the EU VAT rules, visit the Publications Office of the European Union.
Facilitating Registration and Integrated Shipping
Partnering with a logistics expert simplifies the entire process. Here is how it works:
- Get an approved account with Jet Worldwide.
- Register for IOSS.
- Ship directly to consumers in Europe.
- Enjoy lower costs, full tracking, and no surprise import fees charged to your consignee.
EORI Numbers for Business Importers
While IOSS is designed for e-commerce orders sent to individuals (B2C), shipping from Canada to Europe for business purposes (B2B) requires verifying the EORI number of the consignee.
An Economic Operators Registration and Identification number (EORI number) is an identification number for businesses that import or export goods into or out of Europe. It is a mandatory part of the data set required for customs entries 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 completely unique within that Member State.
Shipping Online E-Commerce Orders to Europe
Jet Worldwide provides global logistics solutions tailored for Canadian and US businesses. Our logistics support augments your team, ensuring you are never restricted by a single carrier or rigid process.
- Parcel shipping solutions from North America to Europe and the UK for online orders.
- Delivery VAT and Duty paid import solutions for B2C e-commerce consignments.
- World-class logistics support from industry experts.
Disclaimer: The information in Jet Worldwide online content, including this post, is for general information only and provided "as is"; no representations are made that the content is error-free.
