VAT POA Shipping for Shipments to EU: €150 Rule Changes in 2026

As of 1 July 2026, former EU customs duty relief for items worth up to €150 was withdrawn. A temporary customs duty of £3 per qualifying item has been charged for some low-value imports. Import VAT is charged separately. This will be the case until 1st July 2028.

This is important for companies considering VAT POA Shipping for Shipments to EU. The €150 customs rule, IOSS, import VAT and postponed VAT accounting, are related but do not perform the same function.

What Changed to the €150 Import Rule?

Before July 2026, qualifying goods with an intrinsic value up to €150 generally benefited from customs-duty relief. That threshold-based relief has now been abolished.

Issue	Before 1 July 2026	From 1 July 2026
Customs-duty relief ≤€150	Generally available	Removed
Temporary duty	None under the relief	€3 per qualifying item
Import VAT	Already applicable	Still applicable
IOSS	Available for eligible ≤€150 B2C sales	Still relevant
Product-level customs data	Important	Increasingly important

The €150 figure has therefore not disappeared from every EU import procedure. IOSS, for example, continues to cover eligible distance sales of imported goods in consignments not exceeding €150.

The €3 Duty Is Not Simply €3 Per Parcel

A frequent mistake is to treat the new charge as a flat €3 fee for every physical parcel.

The rule refers to a customs item, which is linked to tariff classification within the declaration. Consequently, several identical products classified together may represent one item, while products under different tariff classifications can generate multiple €3 charges.

For example:

Shipment Contents	Example Treatment
5 identical T-shirts under one tariff item	€3
1 T-shirt + 1 watch under two tariff items	€6

This makes accurate product classification more important when calculating the landed cost of low-value e-commerce shipments. The Commission describes the €3 charge as a temporary customs duty applying per item to qualifying low-value distance-sale imports.

VAT POA Shipping for Shipments to EU Does Not Remove Customs Duty

Postponed accounting and customs duty should be treated as separate layers.

Customs duty determines the tariff liability when goods enter the EU.

Postponed import VAT accounting, where available under the rules of the importing Member State, changes how eligible import VAT is accounted for. Instead of necessarily creating an immediate VAT cash payment at customs, the VAT may be accounted for through the relevant VAT return mechanism.

Therefore:

POA does not cancel the €3 customs duty.

Likewise, there is no single EU-wide POA system with identical requirements in every Member State. Importers must verify local VAT registration, eligibility and reporting requirements in the country of importation.

IOSS vs POA vs Standard Import VAT

Choosing the correct mechanism depends on the transaction structure.

Factor	IOSS	POA	Standard Import VAT
Main purpose	Collect B2C VAT at sale	Postpone VAT accounting	Settle VAT through import procedure
Typical use	Low-value B2C distance sales	Importer-led shipments	General imports
€150 relevance	Yes	Depends on national rules	Depends on procedure
Removes customs duty?	No	No	No
Cash-flow timing	VAT collected at checkout	VAT may be reported later	VAT may be payable at import

Under IOSS, VAT is normally collected from the customer when the sale occurs and declared through the IOSS return; the qualifying import is then exempt from import VAT.

This is fundamentally different from VAT POA Shipping for Shipments to EU, where an importer uses an applicable postponed-accounting mechanism.

Importer of Record and DDP vs DAP

The VAT method cannot be selected without identifying who controls the import.

Four roles should be clearly separated:

Seller → Freight Forwarder → Customs Declarant → Importer

Under DDP, the seller normally accepts broader responsibility for import clearance, duties and taxes under the agreed delivery structure.

Under DAP, the buyer generally assumes import-clearance obligations at destination.

However, Incoterms allocate commercial responsibilities; they do not replace customs or VAT law. A shipment described as DDP still requires a valid importer structure, correct customs declaration and appropriate VAT treatment.

Customs Data Now Has a Direct Cost Impact

Before dispatch, companies using VAT POA Shipping for Shipments to EU should verify:

•   HS/CN classification

•   Accurate product description

•   Intrinsic and invoice value

•   Country of origin

•   EORI details

•   Importer information

•   VAT number where required

•   IOSS number where applicable

•   Incoterm

•   Number of tariff items in the declaration

Poor classification can now affect not only compliance but also the number of €3 duty items generated.

Another 2026 change reinforces this data-driven approach: Product Identifiers can be declared voluntarily from July 2026 and are scheduled to become mandatory from 1 November 2026 for the relevant low-value import framework.

Example: A Low-Value EU Shipment After July 2026

Consider an eligible €120 e-commerce consignment containing:

•   Three identical phone cases under one tariff item;

•   One charging cable under another tariff item.

If two qualifying customs items are declared, the temporary customs duty could be:

2 items × €3 = €6

That customs duty is separate from VAT treatment.

The final landed-cost structure can therefore include:

Goods value + freight + customs duty + applicable VAT + clearance charges

Using IOSS, POA or another VAT procedure changes the VAT collection and accounting route—not the existence of customs obligations.

What Shippers Should Check Before Dispatch

For VAT POA Shipping for Shipments to EU, the practical decision should follow this sequence:

• Determine whether the shipment is B2B or B2C.

• Confirm whether its intrinsic value is ≤€150 or above €150.

• Identify whether IOSS, postponed VAT accounting or standard import VAT applies.

• Confirm the Importer of Record.

• Select DDP, DAP or another suitable delivery term.

• Verify tariff classification and the number of customs items.

• Check invoice, value, origin, EORI and VAT data.

• Calculate duty, VAT and clearance costs before shipment.

Because of the change in 2026, low-value EU shipping will be less about the €150 threshold, and more about customs classification and VAT treatment. It will also be about responsibility of the importer, and the structure of the shipment.

Fexbuy has multiple shipping and transport solutions to help businesses ship from China to the EU, either via sea, rail or air, with a DDP/DDU solution, and support with EU customs clearance. Those considering VAT POA Shipping to the EU can assess their shipment structure, destination and customs requirements with Fexbuy Logistics, prior to dispatch.

FAQs

Q1. Does Fexbuy support VAT POA Shipping for Shipments to EU?

Yes. Fexbuy can support EU shipping and customs-clearance planning where postponed VAT accounting arrangements are applicable.

Q2. Can Fexbuy determine whether POA is available in every EU country?

Availability depends on the destination Member State, importer status, VAT registration, and local tax rules. These factors should be checked before shipment.

Q3. Does VAT POA remove the new €3 customs duty?

No. POA concerns import VAT accounting. It does not eliminate applicable customs duty.

Q4. Can Fexbuy handle shipments below €150 after the 2026 rule change?

Yes. Shipment value, product classification, VAT method, importer structure, and customs data should be reviewed before dispatch.

Q5. Does Fexbuy support IOSS shipments to the EU?

Fexbuy can coordinate logistics for shipments using IOSS where the seller and transaction meet the applicable IOSS requirements.