EU VAT & Duty Fees (Update Sep 2026)

TLDR: We will stop collecting EU VAT on all orders to the EU from 9 Sep 2026. You will have to pay your country's VAT, as well as applicable customs duty fees, to your country's customs office or national postal service when the package arrives in your country. 

From 1 July 2026, the EU has implemented sweeping rules that effectively blocks small businesses in non-EU countries from collecting EU VAT from EU residents. 

Non-EU businesses have been using the EU’s IOSS programme since 2021 to collect VAT from EU residents at checkout, and ship packages valued below €150 to them. The VAT collected is then transferred back to EU countries, so the end result is that EU residents will pay VAT on online purchases from non-EU businesses. We have been registered under the IOSS programme for the past few years. 

However, from 1 July 2026, a new EU law abolished the customs duty exemption for packages valued below €150. This means that, on top of the VAT, IOSS packages entering EU countries also need to have collected customs duty fees or get rejected. The IOSS system does not support the collection of customs duty fees for packages at all, i.e. the technology offered by the EU does not support the law they have decided to pass and enforce. 

The solution adopted by most customs offices across the EU is to simply reject all IOSS packages. Even when the VAT has been duly collected and repatriated back to the destination country, those countries have decided that it's easier to pocket the VAT but reject the packages, simply because they don't have the technology to collect customs duty fees on IOSS packages. 

Many of our packages to the EU have been rejected by the customs offices of destination countries. In our testing with affected customers, we can confirm that packages that do not contain any IOSS information do not get rejected by customs offices. Instead, the customs office / national postal service will reach out to the package's recipient and ask them to pay the VAT, customs duty fees, and any other applicable processing fees. 

We have made the difficult decision to stop collecting EU VAT under the IOSS programme, until the EU comes up with a suitable solution. All packages to the EU will stop containing our IOSS registration information. We're deeply sorry to all EU customers, but this is the only viable solution we can find at this time. 

This is an unfortunate situation that ends up penalising consumers and residents in the EU, who now have to pay extra fees on packages from non-EU countries.