E-commerce packages with a value under 150 euros will no longer be tax-exempt.

The European Union (EU) has decided to abolish the tax exemption for this group of goods to tighten import control and ensure fair competition for businesses within the bloc. The EU stated that the old regulation had been exploited by many retailers outside the bloc to split orders into smaller quantities, resulting in revenue losses and creating disproportionate pressure on the domestic market.

According to the transitional roadmap, from July 1st, small shipments sent directly to EU consumers will be subject to a fixed customs duty of 3 euros per item category. After 2028, the new tariff system will be fully implemented once customs reforms across the bloc are completed.

Speaking about this decision, the Finance Minister of the Republic of Cyprus, Makis Keravans – whose country currently holds the rotating presidency of the EU Council – emphasized that with the explosion of global e-commerce, EU customs rules must be updated to keep pace with new practices.

According to Minister Makis Keravans, abolishing the outdated tax exemption regulations will help support EU businesses while preventing dishonest sellers from exploiting legal loopholes. He also called for accelerating comprehensive customs reforms, considering this a key factor in enhancing the competitiveness and ensuring the economic security of the Union.

Source: VTV

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