Also, Revenue indicates that for non – IOSS users, the €3 duty is included in the amount used to calculate VAT, meaning VAT may be charged on top of the duty-inclusive amount.
Will customers see this at checkout?
Normally, the duty is charged to the declarant (typically the seller/importer, an IOSS holder, a special arrangements user, or an indirect representative).
In practice, customers and businesses may still see the cost passed through via:
- higher checkout prices
- updated “taxes & duties” lines
- changes to delivery charges
- fewer savings from mixed-item bundles (if multiple product types trigger multiple €3 charges)
Only in limited cases might a consumer pay directly.
Why is this happening?
The EU position is that this change helps level the playing field and strengthens consumer protection, reflecting:
- major growth in Cross-Border low‑value‑commerce
- concerns about unfair competition for compliant EU retailers
- safety and compliance issues (EU inspections in 2025 across categories including cosmetics, PPE, supplements, toys and electronics found over 60% of checked products were non‑compliant)