A Simple Guide to E-commerce Customs Declarations in the EU
A Simple Guide to E-commerce Customs Declarations in the EU
Upcoming EU Customs Changes (From July 2026)
The European Union is introducing major customs reforms that will significantly impact e-commerce shipments.
- The €150 duty-free threshold will be removed, meaning all shipments may be subject to customs duties.
- A temporary €3 flat duty per item is expected between 2026 and 2028.
- Duties will increasingly be applied per product (SKU level) rather than per shipment.
- Future systems will rely on more detailed product data, including HS codes, origin, and value.
What this means: Even low-value e-commerce shipments will become more complex and may incur additional costs. Businesses should start preparing for more detailed customs reporting and pricing strategies.
👉 Want to know more about the 2026 reform? Read our full deep-dive here.
If you run an e-commerce business and ship products from outside the EU to customers within the EU, things have changed significantly in recent years. What used to be a simple process now involves specific systems, rules, and electronic declarations — especially for low-value shipments.
But once you understand the basics, it becomes much easier to manage.
Why these rules exist
The European Union introduced updated customs rules to ensure that VAT is properly collected on all imported goods, including low-value e-commerce orders. Previously, many small shipments entered with minimal checks, but today, every shipment must be declared electronically.
This mainly affects shipments valued at €150 or less, which are very common in online retail.
What happens when you ship goods under €150?
For shipments with a value of up to €150 coming from outside the EU, you must submit a customs declaration using the DECO system. This system is specifically designed for low-value shipments and simplifies the process.
Although customs duties are usually not charged at this value level, VAT still applies. That is why declaring these shipments correctly is essential.
In simple terms, even small packages now require proper customs documentation.
What about shipments above €150?
For shipments exceeding €150, you must use traditional customs declaration systems such as DMS or AGS. These systems require more detailed information and are used for higher-value or more complex shipments.
Additionally, if you are shipping goods to businesses instead of private individuals, you must use DMS or AGS regardless of the shipment value.
Special rules for shipments from the United Kingdom
Following Brexit, shipments from the UK are treated differently. Initially, VAT-only shipments could be declared using a system called Venue. However, since January 1, 2023, this is no longer allowed.
Now, low-value shipments from the UK must also be declared using the DECO system, aligning them with other non-EU countries.
The Import Scheme (IOSS)
The Import One-Stop Shop (IOSS) is an optional scheme that simplifies VAT collection for low-value shipments. By using IOSS, businesses can collect VAT at the point of sale instead of at the border.
This improves the customer experience by avoiding unexpected charges during delivery.
When using IOSS, you will receive an Import Scheme Number, which must be included in your DECO declaration.
Shipments from other non-EU countries
For shipments coming from countries outside the EU (excluding specific UK cases), the rule is straightforward. If the value is €150 or less and no restrictions apply, you must use the DECO system.
Older systems such as DMS, AGS, Venue, GPA, and SPA can no longer be used for these low-value shipments.
Conclusion
Understanding EU customs declarations is essential for any e-commerce business selling to EU customers. Choosing the correct system — whether DECO for low-value shipments or DMS/AGS for higher-value goods — helps avoid delays, reduce compliance risks, and improve delivery experiences.
Once properly set up, these processes become part of your normal workflow, making cross-border e-commerce smoother and more reliable.