Canada → EU: what your European buyer pays in 2026
The new EU low-value rules apply to Canadian sellers too: €3 per item for IOSS or postal parcels of €150 or less, a scheduled €2 handling fee per item, and VAT on every order.
At a glance
| Duty-free threshold | None since 1 Jul 2026 (€3 per item ≤ €150 for IOSS/postal) Verified Verified |
|---|---|
| VAT | 17–27% by country Partly verified Verified |
| Handling fee | €2 per item from 1 Nov 2026 (scheduled) Partly verified |
| Preferential origin | CETA may give 0% duty (not verified here) Unverified |
Worked example: CAD 80 silver earrings + CAD 15 shipping to France, post, buyer pays on delivery
| Item | Amount | Paid when / by | Status |
|---|---|---|---|
| Item price | €50.77 | At checkout | |
| Shipping charged | €9.52 | At checkout | |
| EU flat customs duty €3 × 1 item(s) | €3.00 | Buyer pays on delivery | Verified |
| France import VAT 20% (collected on delivery) | €12.66 | Buyer pays on delivery | Partly verified |
| EU Union handling fee €2 × 1 item(s) | €2.00 | Buyer pays on delivery | Partly verified |
| Buyer pays in total | €77.95 | €60.29 at checkout + €17.66 on delivery | |
| Seller must collect & prepay | €0.00 | Duties, taxes and fees you need to build into the price | |
- Unverified Postal operator customs clearance fee: no verified published amount, so it is NOT included. Enter your carrier's fee to include it.
Duties & taxes
The EU's €150 customs-duty exemption for low-value consignments was abolished on 1 July 2026 (Council Regulation (EU) 2026/382). Goods in consignments of €150 or less are now subject to customs duty.
From 1 July 2026 until 1 July 2028, a flat customs duty of €3 per item applies to consignments of €150 or less that are declared under IOSS or sent as postal consignments. Normal tariff rates are expected to apply once the EU customs data hub is ready.
An 'item' means each different tariff sub-heading in the parcel. Example: 1 silk blouse + 2 wool blouses = 2 items = €6. Identical goods can be grouped on one declaration line.
From 1 November 2026 a Union Handling Fee of €2 per distinct item will apply to B2C e-commerce goods arriving from outside the EU, at any value. It is in addition to the €3 duty, cannot be refunded (even on returns), and does not apply to private gifts. The Commission adopted the €2 amount on 21 September 2026, but it still has to pass European Parliament/Council scrutiny and be published in the Official Journal.
Consignments of €150 or less that are neither IOSS nor postal (e.g. courier, buyer pays VAT on import) are outside the €3 regime. Since the duty exemption is gone, they appear to pay the normal tariff rate. Check with your courier.
Above €150, IOSS cannot be used. Import VAT and customs duty (normal tariff rate) are due at import, paid by the buyer (DDU) or prepaid by the seller (DDP via a courier).
Canadian-origin goods can usually get preferential (often 0%) duty under CETA if you give an origin declaration. The rates for your product have not been checked here.
Whether preferential origin (UK TCA, CETA) cancels the flat €3 duty has not been confirmed from EU guidance text yet. Assume the €3 applies unless your carrier confirms otherwise.
Who pays
For consignments of €150 or less, VAT can be charged at checkout through the Import One-Stop Shop (IOSS), at the buyer's country rate. Marketplaces handle this for sales made through them. Non-EU sellers registering for IOSS themselves generally need an EU-established intermediary.
Without IOSS, import VAT is collected from the buyer on delivery. The postal operator or courier usually adds its own clearance fee.
EU standard VAT rates range from 17% (Luxembourg) to 27% (Hungary), e.g. Germany 19%, France 20%, Italy 22%, Spain 21%, Netherlands 21%, Ireland 23%. Reduced rates apply to some goods (e.g. books).
Paperwork
From 1 November 2026, product identifiers are required in customs data for B2C distance-sale imports into the EU, at any value.
Etsy says US-bound packages need a 10-digit HTS code and EU-bound packages a 6-digit code. Without one, a package may be delayed or returned.
Common pitfalls
- Without IOSS, Canada Post parcels arrive with VAT, duty and a carrier fee for the buyer to pay.
- Listing several different products in one parcel multiplies the per-item charges.
FAQ
Does the €3 EU duty apply to parcels from Canada?
Yes, for consignments of €150 or less declared under IOSS or sent by post, from 1 July 2026. We have not confirmed whether a CETA origin claim removes it. Verified Unverified
Sources for this page
- Council Regulation (EU) 2026/382 (abolition of €150 duty relief; €3 per item), EUR-Lex. Accessed 20 Oct 2026. Partly verified
- EU Customs Reform, European Commission – Taxation and Customs Union. Accessed 20 Oct 2026. Partly verified
- Council gives final green light to new customs duty rules for small parcels (11 Feb 2026), Council of the EU. Accessed 20 Oct 2026. Partly verified
- Union Handling Fee (UHF) – 1 November 2026 (published 30 Sep 2026), Revenue (Irish Tax and Customs). Accessed 20 Oct 2026. Verified
- Questions & answers – EUR 3 customs duty guidance (30 Jun 2026), European Commission. Accessed 20 Oct 2026. Verified
- Commission sets Union handling fee at EUR 2 per item (2 Oct 2026), CLECAT (industry association, secondary). Accessed 20 Oct 2026. Verified
- Customs formalities for low value consignments (IOSS), European Commission – Taxation and Customs Union. Accessed 20 Oct 2026. Verified
- Guide to the VAT One Stop Shop (IOSS intermediary rules), European Commission. Accessed 20 Oct 2026. Partly verified
- VAT rules and rates (Your Europe) / VAT rates in Member States, European Union. Accessed 20 Oct 2026. Partly verified
- Information for Managing International Shipments, Etsy Help. Accessed 20 Oct 2026. Verified