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EU to End Postal Exception, Imposing Customs Checks on Low-Value Imports

Published: 2025/12/13 04:06:42

The European Union is poised to eliminate a long-standing exemption that has allowed parcels valued under €150 to enter the bloc without customs duties or comprehensive checks. This policy shift, agreed upon by EU member states on December 12, 2025, is a direct response to concerns about unfair competition from online retail giants like Shein and Temu, which heavily rely on shipping low-cost goods directly to consumers.

The End of the VAT Exemption

Currently, goods imported into the EU with a value of €150 or less are exempt from Value Added Tax (VAT) and are subject to minimal customs scrutiny. This exception, originally designed to facilitate postal deliveries, has been increasingly exploited by companies shipping directly from outside the EU, particularly from China. Critics argue this creates an uneven playing field, disadvantaging European businesses that must comply with stricter regulations and pay full taxes.

The change will require online retailers to collect VAT on all imports, regardless of value, and will subject parcels to standard customs controls. This includes verifying the declared value and ensuring compliance with EU safety and environmental standards. The European Commission estimates that the current system results in important revenue losses for member states and undermines the competitiveness of local businesses.

Why the Change Now?

The decision to end the VAT exemption comes after years of pressure from European retailers and manufacturers who have voiced concerns about the growing dominance of ultra-fast fashion and low-cost online marketplaces. These companies frequently enough offer significantly lower prices due to the lack of tax and regulatory burdens.

“The current system effectively allows companies like Shein and Temu to favour ‘ultra-fast fashion’ and low-cost online giants, such as Shein and Temu, by allowing millions of low-value parcels to enter the EU without full checks or customs charges,” stated a representative from the european Retailers Association [Euroretailer website]. The EU “must be prepared to do more” to protect its businesses.

European Commission Response

The European commission has welcomed the agreement reached by member states, emphasizing the urgent need for a solution to safeguard European retail businesses. A Commission spokesperson stated that the new rules will “ensure fair competition and protect consumers from possibly unsafe or counterfeit products.” [European Commission Press Releases]

Implementation and Timeline

While the agreement has been reached, the exact implementation timeline and specific details of the new customs procedures are still being finalized. The Commission is expected to publish detailed guidelines in early 2026, with the new rules likely to take effect later that year. There is ongoing discussion about a phased implementation to allow businesses time to adjust to the new requirements.

Key Takeaways

• The EU is ending the VAT exemption for imports under €150.
• This change aims to level the playing field for European retailers competing with companies like Shein and Temu.
• All imports will be subject to VAT collection and standard customs checks.
• Implementation is expected to begin in late 2026.

FAQ

Q: Will this affect the price of goods I buy online from outside the EU?

A: Yes,you can expect to pay more for goods purchased from outside the EU,as VAT will now be applied to all purchases,regardless of value. Shipping costs may also increase due to the added customs checks.

Q: What is VAT?

A: VAT (Value Added tax) is a consumption tax applied to the value added at each stage of