In 2024 there were 4.6 billion low-value parcels that entered the EU. Under the current EU rules, parcels under the value of €150 are exempt from customs duties. This is all due to change from July 2026, with significant changes being implemented. The main target of this reform is a change to the long-standing €150 customs duty exemption, which is also referred to as the de minimis threshold for duties. How will this impact importers in Ireland and how can Emerald Freight help Irish businesses?
What was the €150 duty-free threshold?
Until July, any parcels that are imported into the EU from non-EU countries that have an intrinsic value of €150 or less are exempt from paying customs duties. They do however require a customs declaration and are subject to import VAT. This rule has helped to achieve a rapid growth of direct-to-consumer e-commerce shipments. In particular, the growth of trade from China. However, it has also raised awareness and questions over unfair competition with EU-based retailers, fraud, and undervaluation of products. There is also the matter of the strain such a high volume of small parcels cause to customs systems. It will be a big change to the way imports function into EU countries, such as Ireland, so understanding the detail is important.
What is changing and when?
The new regulation comes into force this summer, so what can you expect and when?
| Date | Information |
|---|---|
| 01/07/2021 | VAT exemption for goods below €22 was removed under the EU VAT e-commerce package. All imports are subject to VAT regardless of value. |
| 13/11/2025 | EU Member States reached political agreement to abolish the €150 threshold as part of broader efforts to modernise the EU Customs Union and find balance between traditional bulk exports and e-commerce imports. |
| 01/07/2026 | An interim system will introduce a flat-rate customs duty of €3 per item (or per line on the customs declaration) for products under €150 entering from non-EU countries. |
| Targeted date of mid-2028 | The full EU Customs Data Hub becomes operational, a reform of the customs process and when normal customs tariffs apply to all goods without previous low-value exemptions. |
There has been a clear timeline in place for what changes will happen and when, but how will it affect businesses and individuals in Ireland?
Who does this affect in Ireland?
For any business or individuals looking to purchase goods from outside the EU that are under the value of €150, the shipments will no longer enter the EU duty-free once the new policies have become active on July 1st, 2026. What does this mean practically, and could it be a benefit to Irish business?
Improved competitiveness
The changes may mean that when you add the customs charges, VAT, and delivery costs to imported goods, that Irish businesses are competitive again in terms of price and availability. It will, however, impact Irish businesses that import certain items as part of a selling strategy.
Faster delivery
Irish and EU-based retailers can offer much faster delivery times than goods being imported from non-EU countries. For a business aiming to compete with non-EU retailers, this provides them with a chance to make a competitive advantage over delivery times.
Customer confidence
Customers in Ireland may feel greater confidence in the quality of goods purchased and the greater transparency of process and import charges.
An example of how this difference would play out for an Irish customer is to compare a €20 product from a non-EU retailer website and the same or similar product for €23 from an Irish retailer. Once the Customs Duty and handling charges are added to the cost, the Irish business may offer the better value.
How the new €3 duty is calculated
Below is a worked example of an Irish business importing goods from outside of the EU:
| Goods | Individual Value | Total Customs Value for Both Item Type | €3 Customs Duty | Total Import VAT | Total Cost |
|---|---|---|---|---|---|
| 10 x Cotton Jogging Trousers | €50 + €15 shipping + insurance | €95 | €3 | €101 base value + 23% VAT = €23.23 | €124.23 |
| 5 x Ceramic Plates | €30 + €15 shipping + insurance | €3 |
It’s important to remember that it is distinct items that trigger the extra charges. If you import 10 x one item, you will only incur one €3 charge if the total value is under €150. If you have 10 distinct items, you’ll be charged €30. Any imports from EU countries do not incur these charges, as they are already cleared by customs in the country of origin.
What about VAT? Does IOSS still apply?
The rules around import VAT remain unchanged. The EU VAT e-commerce package was implemented in July 2021, removing the exemption for goods valued at €22 and under. All imports are now subject to VAT. This is regardless of the value of the items. Simplified collections are in place via the Import One-Stop Shop (IOSS). This process is designed for consignments that are valued up to €150 or special arrangements for postal and courier services.
The IOSS allows import VAT to be paid at the point of supply rather than at the point of importation. It can be used to declare goods that are located outside the EU at the time that they are sold; goods that are dispatched in consignments of an intrinsic value not exceeding €150; and goods that are not subject to excise duties. The use of IOSS is not mandatory but brings benefits for suppliers and consumers in terms of when and how much tax is paid.
DDP vs DAP — which model should Irish importers use?
Whether an Irish importer should use DDP or DAP will depend on the individual business, customer base, profit margins, and the structure of its logistics.
What is DDP?
DDP (Delivery Duty Paid) is where the seller accepts responsibility for all duties and taxes at the destination. The new €3 per item charge will not fall directly in your margins if a contract was agreed with set prices prior to the change. The new duty is your cost if you do not renegotiate before this time.
What is DAP?
DAP (Delivered at Place) is where the buyer is responsible for clearing goods through customs and paying the duties at the destination. A European customer will not receive a parcel with a €3 per item customs charge that is payable before collection takes place. This may cause friction in terms of refusals and returns.
It is important that you review your current position and use of DDP or DAP before the change in format in July 2026.
5 steps Irish businesses should take before July 2026
5 simple steps that you should take as an Irish business before the changes to the €150 threshold in July 2026 include:
- Assess your exposure: review your current volume of EU sales, the average value of orders, product categories, and shipping methods. With this information you can calculate the impact the new €3 will have on your profit margins.
- Ensure accurate classifications: work with a freight forwarder or customs expert (such as Emerald Freight) to verify HS codes for all your products. This allows you to prepare detailed and accurate product data that may be required under interim and future systems.
- Review VAT compliance: if you are not already registered, enrol in the Import One-Stop Shop (IOSS) to simplify the collection of VAT and payment across the EU. This can help to streamline the VAT portion of your business as the customs duties change.
- Update pricing: whether you decide to absorb the new charges or pass them on to the customer, clearly display the new total costs, including estimated duties and VAT, at the checkout stage to comply with consumer protection regulations.
- Partner with a logistics expert: it’s important that your logistics solutions match the parameters of your business. Work with an experienced freight forwarder that understands the rule changes and can help you minimise delays at customs clearance, whatever type of products you are importing from outside the EU.
How Emerald Freight can help you adapt
If you have any qualms about the new protocols for goods entering Ireland from non-EU countries and the impact on costs, the Emerald Freight team is here to help. We have a wealth of experience in providing logistics solutions for companies and individuals in Ireland looking to import goods via land, air, and sea. We understand the ins and outs of customs clearance in Ireland, helping to minimise delays and ensure your goods get to you intact, and in time. The end of the €150 threshold for goods coming into Ireland is a significant change, and we’re here to ensure a seamless transition for Irish import businesses.
Below are some common questions we are asked about:
The value of the goods is based on the intrinsic value, which is the cost of the item itself. This is the explanation for items under €150. For goods over €150 the value includes the cost of the item itself but also the addition of transport, insurance, and any handling charges.
The fixed duty cost of €3 will be applied to each individual item that arrives in a parcel. If you order a parcel that contains three different item types, you will be charged duty on each item, costing you €9 in total before VAT is added.
Yes. You must pay Irish VAT on all goods that arrive from outside the EU, regardless of the value.
Changes to the threshold will be implemented from 1st July 2026. From this date, an interim system of €3 per item will be in place for all products under €150 in value until the new EU Customs Data Hub comes into place in mid-2028.
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