The ”tax-free small parcels” policy, which has been in place for many years, is set to become a thing of the past.

Effective July 1, 2026, EU Regulation (EU) 2026/382 will officially take effect. The duty exemption for low-value cross-border parcels originating from outside the EU with a value of less than 150 euros will be abolished, and a uniform fixed duty will be levied based on product category. According to data from the European Commission, approximately 91% of the low-value parcels currently entering the EU market originate from China. This policy is effectively a targeted revision aimed at Chinese cross-border sellers.

I. How Will the New Policy Be Implemented?

The new tax system does not levy taxes on packages, but rather on the goods contained within them.Tariff CategoriesCalculate separately:

Calculation Example:

For product categories with an average order value originally in the €10–€20 range—such as phone cases, jewelry, and small accessories—this €3 flat tax directly erodes profit margins by 20% to 30%.

II. Comparison of the Degree of Impact on Different Sellers

III. The Significance of the VAT Registration Threshold

Behind the EU’s customs duty reforms lies a comprehensive tightening of tax compliance requirements for cross-border e-commerce. Sellers without a VAT registration number face more than just a 3-euro customs duty:

-Customs Interception: Packages may be held by customs, requiring buyers to pay duties on their own, which leads to a rise in the rate of abandoned packages

-Platform Verification: Major European platforms such as Amazon and OTTO have required accounts to be linked to a valid VAT number and are gradually rolling out verification procedures.

-Accountability: Tax authorities in Germany, France, and other countries have begun monitoring data on ”VAT-exempt sales,” with a retroactive period of up to five years.

Current Status of VAT Registration in the EU’s Major Sales Markets:

IV. Requirements for Simultaneous EPR Registration

In addition to VAT, countries such as Germany, France, Austria, and Spain have made it mandatory for sellers selling in their markets to completeExtended Producer Responsibility (EPR) Registration, Product Categories:

·✔ Packaging materials (almost all sellers)

·✔ Electrical and Electronic Equipment (WEEE Directive)

·✔ Battery

·✔ Textiles (France was the first to make this mandatory; Germany is following suit)

Accounts that have not completed EPR registration risk having their products proactively delisted by the platform, and may face retroactive penalties from local regulatory authorities.

If you have any questions, please feel free to contact us:Cell phone: 18676749275 ｜ WeChat: qcygscszk

V. What Can Sellers Do Now?

✔ Highest priority: Verify VAT status

For countries where you are not registered for VAT, get started as soon as possible. If you wait until after July 1 to submit your application, the process will take at least four weeks—and any delay during this period will result in lost revenue.

✔ Adjust the pricing strategy

Incorporate the fixed tariff of 3 euros (or 5 euros after November) into the cost model, recalculate the break-even point for each product, and conduct a special assessment for products with an average order value below €15.

✔ Assess the feasibility of a local warehouse

For best-selling products with stable sales volumes, calculate the difference in total costs between the ”European local warehouse + advance customs clearance and stocking” model and the ”direct shipping + per-item customs clearance” model.

✔ EPR Status Verification

Compare the status of EPR registration in Germany and France against each product category, and complete any missing entries.

Qicaiying offers comprehensive European compliance services:

• VAT Registration Services: Major markets including Germany, France, Italy, Spain, Poland, and the Netherlands; one-on-one support from a compliance advisor; full assistance with document preparation
• EPR Registration Services: EPR registration in Germany, France, and other countries, including guidance on the required documentation
• European Company Registration: For sellers who need to establish a local European entity, we offer a one-stop service covering registration and bank account opening.

July 1 is here, and there’s no time to waste on your VAT registration application. Scan the QR code to add a consultant and assess your European compliance gaps:

Cell phone: 18676749275 ｜ WeChat: qcygscszk

Enterprise Finance Group

Founded in 2015 and headquartered in Shenzhen, Qicaiying Group is a leading provider of corporate services and tax compliance solutions in China.

The Group is deeply committed to providing services across the entire corporate lifecycle. Its core business areas include: business registration, bookkeeping services, tax compliance, overseas company registration (Hong Kong, the U.S., Singapore, Mexico, etc.), cross-border structuring, outbound direct investment (ODI) filing, overseas tax planning, bank account opening assistance, and identity planning.

Over the past decade, Qicaiying has served more than 10,000 corporate clients and has accumulated solid practical experience in key areas such as corporate structuring in Hong Kong and overseas, cross-border tax and financial compliance, and corporate accounting management. The Group boasts a team of seasoned financial and tax advisors who closely monitor changes in domestic and international tax systems and regulatory trends, providing clients with one-stop solutions ranging from structural planning to implementation.