If you buy stock from the EU, sell to EU customers, or move goods across the Channel, the new EU customs rules heading your way in 2026 will touch your paperwork, your pricing and possibly your courier bills. If you also pay suppliers overseas, our look at how digital currencies could speed up SME trade finance is a useful companion. The short answer: the EU is overhauling how it handles imports through a multi-year reform, and the two changes most likely to hit a UK small business first are the phased tightening of safety and security declarations, and moves to scrap the duty-free threshold on low-value parcels. Neither is optional, and both reward getting ready early.
This guide explains the new EU import rules in plain English, what they mean for a small business, which providers can handle the admin for you, and the practical steps to take now. Where a date or figure is still moving through Brussels, we say so rather than pretend otherwise, because the timeline has shifted more than once.
What is actually changing
The EU is running a large customs reform that reshapes how goods enter the bloc. It creates a new EU Customs Authority and a central EU Customs Data Hub, and it changes who is responsible for declaring goods and paying duty. This is a phased programme that rolls out across several years, not a single switch that flips in January. For a UK importer, three strands matter most.
1. Safety and security declarations (ICS2)
The Import Control System 2, known as ICS2, is the EU’s system for advance safety and security data on goods arriving in the bloc. It has been rolling out in releases covering air, then road, rail and sea freight. In practice it means more data must be filed before goods arrive, and incomplete or late filings can hold your shipment. If you use a courier or freight forwarder, they usually file this for you, but you are the one who must supply accurate descriptions, commodity codes and consignee details. Vague product descriptions like “clothing” or “parts” are the classic cause of delays.
2. The low-value parcel threshold
Today, goods sent to EU consumers with a value under €150 are exempt from customs duty (though not VAT). The reform proposes to abolish that €150 duty exemption, so duty could apply to low-value parcels that currently escape it. The exact start date has been the subject of debate, with pressure to bring it forward, so treat 2026 as “check the confirmed date” rather than “banked”. For a UK seller shipping small, cheap items to the EU, this is the change that could quietly raise the landed cost for your customer.
3. Marketplace and “deemed importer” responsibility
The reform shifts more responsibility onto online marketplaces and platforms, treating them in some cases as the “deemed importer” that must ensure duty and VAT are handled. If you sell through a marketplace, expect the platform to ask for more data and to change how charges are collected at checkout. If you sell direct from your own store, the responsibility sits closer to you and your carrier.
VAT and IOSS: the bit most small sellers already touch
Since July 2021, UK businesses selling goods under €150 to EU consumers have been able to use the Import One Stop Shop, or IOSS, to collect EU VAT at the point of sale so parcels clear customs more smoothly. That scheme continues, and it becomes more important as duty rules tighten, because a clean VAT process is what keeps low-value parcels moving. Most UK sellers cannot register for IOSS directly and use an intermediary to hold the registration and file the returns.
If you are building or rebuilding a cross-border shop, it is worth reading our guide to the new EU shipping rules UK online sellers must change now alongside this piece, because the VAT and shipping changes interlock. Sellers launching an apparel line will also find pricing and platform detail in our walkthrough on starting an online clothing store in the UK in 2026, where landed cost to an EU buyer can make or break a sale.
Who can handle the admin for you
You do not have to master customs codes yourself. The market splits into three groups: couriers and freight forwarders who file declarations as part of shipping, IOSS and VAT intermediaries who handle the tax side, and cross-border data and compliance software that plugs into your shop. Naming names matters here, because the useful half of any shortlist is the providers you had not considered.
- Couriers and forwarders: DHL, UPS and FedEx file customs data as part of their service. For freight rather than parcels, UK forwarders such as Davies Turner and Woodland Group handle declarations and can advise on classification.
- IOSS and VAT intermediaries: Avalara and EAS Project are among the specialists that act as IOSS intermediaries and file EU VAT returns for smaller sellers.
- Cross-border data and compliance software: Hurricane Commerce is a UK provider focused on landed-cost and customs data, while Descartes offers customs and trade compliance software for businesses that ship at scale.
Two of those (Hurricane Commerce and EAS Project) are names a first-time importer may not have met, and both are worth a quote request before you default to the big couriers alone.
How the options compare
The right choice depends on volume and whether you want to outsource tax as well as shipping. Prices below are indicative only, because every provider quotes on volume and product type, so treat them as a prompt to ask rather than a fixed rate.
| Route | Best for | Handles VAT/IOSS? | Handles declarations? | Indicative cost basis |
|---|---|---|---|---|
| Courier all-in (DHL, UPS, FedEx) | Small parcels, direct-to-consumer | Often via a partner | Yes | Per shipment, duty/VAT often billed on |
| Freight forwarder (Davies Turner, Woodland Group) | Pallets and larger imports | Advises, not usually the intermediary | Yes | Per consignment plus clearance fee |
| IOSS intermediary (Avalara, EAS Project) | EU B2C sellers under €150 | Yes | No (tax only) | Registration plus monthly/return fee |
| Compliance software (Hurricane Commerce, Descartes) | Higher-volume online sellers | Data and calculation, not filing | Data feeds declarations | Subscription or per-transaction |
A realistic example
Say you run a Bristol homeware shop selling on your own WooCommerce store and you ship candles and ceramics to customers in France and Germany. A €30 order currently ships duty-free but VAT applies, and you likely already collect that VAT through an IOSS intermediary. Once the duty exemption is removed, that same order could attract customs duty too, which either raises the price your customer pays or eats your margin if you absorb it. The practical fix is to get your commodity codes right, decide clearly whether you ship on a delivered-duty-paid or delivered-at-place basis, and show the customer the full landed cost before checkout so there are no nasty surprises at the door. Accurate product data also feeds the ICS2 declarations your courier files, so tidying it up solves two problems at once.
If a slice of your sales runs through social commerce, the same customs and VAT logic applies there, which is worth bearing in mind given how fast TikTok Shop is booming among UK small business sellers. Platform sales do not exempt you from getting the underlying paperwork right.
Frequently asked questions
Do the new EU customs rules apply to me if I only import into the UK?
The EU reform governs goods entering the EU, so it bites hardest when you sell or ship to EU customers. If you only bring goods into the UK from the EU, your obligations sit with HMRC‘s import processes, not the EU system. Many small businesses do both, which is why it pays to map every direction your goods travel.
Is IOSS still worth registering for?
For most UK sellers shipping goods under €150 to EU consumers, yes. It lets you collect EU VAT at checkout so parcels clear faster and customers are not hit with surprise charges. As duty rules tighten, a clean VAT process becomes more valuable, not less.
When exactly does the duty-free threshold disappear?
The proposal to scrap the €150 duty exemption is part of the wider reform and the confirmed start date has moved during negotiations. Do not build plans around a specific month until it is finalised. Check the European Commission’s updates and ask your courier or intermediary what date they are working to.
Will my courier just handle everything?
Couriers file declarations, but they rely on the data you give them. Poor product descriptions, wrong commodity codes or missing consignee details cause most delays. You stay responsible for accuracy even when someone else does the filing.
What happens if I get it wrong?
Common consequences are held or delayed shipments, unexpected duty and VAT bills passed to your customer, and reputational damage from failed deliveries. Repeated errors can trigger closer scrutiny of your consignments.
What to do next
- Audit your product data: make sure every item has an accurate description and correct commodity code before it feeds any declaration.
- Confirm your VAT position: check you are registered for IOSS through an intermediary such as Avalara or EAS Project if you sell to EU consumers under €150.
- Ask your carrier or forwarder, whether that is DHL, UPS, Davies Turner or Woodland Group, which reform dates they are working to and what data they now need from you.
- Track the source: follow the European Commission’s EU customs reform pages and HMRC guidance so you act on confirmed dates, not rumour.
