From 1 November 2026, EU customs will charge a €2 handling fee per item on goods sold to EU consumers from outside the EU. The European Commission confirmed the amount and date in its updated customs guidance (version of 5 October 2026).
What is the handling fee?
It is a fixed charge for handling the import of goods sold in a distance sale. That means goods sent from outside the EU to a customer who is not VAT registered, such as a private shopper.
The amount is set by Commission delegated act C(2026) 66946694_0/090166e533d2f58a). It applies from the tenth day after that act enters into force. The act was still under scrutiny by the European Parliament and Council in early October. So the Commission says the fee is "expected to apply from 1 November 2026".
| Charge | Applies to | Amount | Until |
|---|---|---|---|
| Temporary customs duty | Consignments up to €150 | €3 per item | 1 July 2028 |
| Union handling fee | Distance sales at any value | €2 per item | No end date |
| Import VAT | Every import | Destination country rate | No end date |
How is it counted?
Per item, the same way as the €3 duty. An item is goods in a consignment that share the same tariff classification, description and origin. In practice the fee applies to each line on the customs declaration, whatever the quantity on that line.
Unlike the €3 duty, the fee has no value limit and no end date.
What it means for a UK order
Say a customer in France orders a cotton T-shirt, a ceramic mug and a phone case. The order is worth €60 and goes in one parcel. Each product has its own commodity code, so the parcel has 3 items.
Duty3 items × €3 = €9
Handling fee3 items × €2 = €6
Total customs charges€9 + €6 = €15
Before 1 November the same parcel paid €9. Now say a €25 order holds three different products. The charges are €15, which is 60% of the order value (€15 ÷ €25).
A single jacket worth €200 does not pay the €3 duty, because the parcel is over €150. It pays normal customs duty and import VAT instead. It still pays the €2 fee, because the fee applies at any value.
Who this affects
Any business that sells goods from Great Britain to EU consumers, through its own website or a marketplace. It applies whether you use IOSS, the carrier's special arrangements or a full customs declaration.
Sales to EU businesses that are VAT registered are not distance sales, so the fee does not apply to them.
Can you claim UK origin to avoid it?
No. The Commission's guidance says goods that qualify for preferential tariffs still pay the fee. That includes UK-origin goods under the UK and EU trade deal. Every IOSS consignment also pays the €3 duty, whatever its origin.
Is VAT charged on the fee?
Yes. The Commission treats the fee as an incidental cost of the sale, so it forms part of the amount VAT is charged on.
- With IOSS: no import VAT is due on the fee at the border. If you charge the fee to your customer at checkout, it goes into the price you declare on your IOSS return. On our French example, that is €6 × 20% = €1.20 of extra VAT.
- Without IOSS: the carrier or customs adds the fee to the value for import VAT.
What to do now
Ask your carrier how they will pass the fee on. Whoever lodges the customs declaration owes it, usually the carrier or its agent. Find out whether they bill you or your customer, and what they add.
Decide who pays. If you sell delivered duty paid, add €2 per item to your price or shipping from 1 November. If the customer pays on delivery, say so clearly at checkout.
Update your returns policy. The fee is not refunded once the customs declaration is accepted, even if the goods come back.
Check your commodity codes. Each code is a separate item, so wrong codes can add lines.
What has not changed
- The IOSS limit is still €150, and IOSS still covers VAT only.
- The €3 duty still applies to consignments up to €150 until 1 July 2028.
- EU VAT rates have not changed. See our EU VAT rates table.
- Sales to VAT-registered EU businesses are not caught.
More worked examples are in our guide to the EU €3 customs duty. For IOSS and larger orders, read EU VAT for UK businesses.
General guidance only. Check the Commission's guidance or ask a customs adviser about your own goods.
Questions
When does the EU handling fee start?
The Commission expects it to apply from 1 November 2026, the tenth day after its delegated act enters into force.
How much is the EU handling fee?
€2 per item, where an item is each different product line on the customs declaration. Three units of one product count as one item.
Does the handling fee apply to parcels over €150?
Yes. The fee applies to goods sold to EU consumers at any value. Only the €3 duty is limited to consignments up to €150.
Is the handling fee refunded if the customer returns the goods?
No. The fee cannot be refunded once customs have accepted the declaration. Any VAT charged on the fee at import can be refunded with the rest of the import VAT.
