On 30 October 2026, the French Government’s Service Public portal announced that the European Union will enforce new customs processing fees for all parcels imported into the EU from non-EU countries effective 1 November 2026. This measure implements the EU VAT e-commerce package adopted in 2021, which removes the VAT exemption for low-value consignments valued at €150 or less. Previously, goods below this threshold entered the EU without VAT or customs formalities. The new regime requires either the Import One Stop Shop (IOSS) declaration by the seller or marketplace, or standard customs clearance with associated fees paid by the carrier or recipient. The French Directorate General of Customs and Indirect Taxes (DGDDI) will collect these processing fees to cover administrative costs of clearance, fundamentally changing cost structures for cross-border e-commerce shipments destined for French consumers.
Key Takeaways
- End of Low-Value VAT Exemption: All commercial goods imported into the EU are now subject to VAT regardless of value. The €150 threshold for VAT exemption is abolished, meaning every parcel attracts import VAT and customs processing fees.
- Mandatory IOSS or Customs Declaration: Non-EU sellers and marketplaces must register for the IOSS to collect VAT at point of sale for consignments ≤€150. For goods above €150, or where IOSS is not used, standard customs declarations apply, incurring carrier handling fees passed to the recipient.
- Impact on Consumers and Businesses: French consumers should expect additional charges (VAT + processing fees) upon delivery for orders from outside the EU. E-commerce platforms must update checkout systems to reflect IOSS registration numbers and ensure correct VAT remittance to avoid parcels being held at customs.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement