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What is changing?
At present, no Customs duty applies to eCommerce packages entering the EU where such goods are valued at €150 or less. However, from 1 July 2026, a €3 Customs duty will apply to the online purchase of goods from non-EU (including UK) locations. This change will apply both to Irish consumers, as well as those in other EU Member States.
The new rules are intended to apply until 1 July 2028 but may be extended beyond this.
Application of the new rules
The €3 Customs duty will be charged in one of two ways:
(i) at checkout with the online retailer collecting the duty; or
(ii) charged on delivery with the postal service/courier collecting the duty prior to the goods being delivered.
The €3 charge will apply to each item/product type in a parcel (not just the parcel itself) meaning that where multiple product types are included in one parcel, several €3 charges may apply. This will result in some online purchases becoming more expensive.
For example, take a parcel which contains a silk blouse and a cotton t-shirt costing less than €150. As the parcel contains two distinct items, a €3 charge will apply to each item. In addition to VAT and delivery charges, Customs duty charges of €6 will apply.
However, where the parcel contained two identical cotton t-shirts, these would be considered one item and a single €3 charge would apply.
Refund rules under the new customs regime
Under the new rules, where non-EU goods are returned, the Customs duty is non-refundable, unless the goods are faulty.
VAT refunds will be processed in line with the businesses terms and conditions and consumers are advised to check the supplier’s terms and conditions in advance of making a purchase.
Location of the goods
No Customs duty applies if the goods are dispatched from Ireland or another EU Member State at the time of purchase. However, prior to making a purchase, it is advised to check the location from where the goods are being shipped. This is particularly advised in cases of non-EU suppliers with a “.ie” website domain or are showing Euro prices.
Potential implications
The new rules could have significant implications for retailers and e-commerce businesses, particularly those dealing in fast-moving, low-cost consumer goods. Such implications may include:
- Increased operational costs
- Pressure on profit margins
- Decisions around absorbing or passing costs onto customers
- Increased risk of abandoned online baskets
- Supply chain and fulfilment restructuring
- Greater reliance on EU warehousing and bulk deliveries
- Increased competition challenges against EU-based sellers
How RSM can help
A key area for review is the approach used to package and ship products. As the charge relates to each type of product in the consignment, how products are classified, grouped, and declared is critical. As there could be significant cost implications for businesses shipping mixed-product consignments into the EU, we can help assess current shipping profiles, identify opportunities to consolidate shipments by product item/tariff heading where commercially possible and review the wider operational and commercial impacts these changes may have on trade flows.
