Shopify now collects the new EU flat customs duty at checkout, automatically
Released on , Shopify Managed Markets and Shopify’s import tax and duty calculation both now support the EU’s new flat customs duty on low-value imports from outside the EU, effective 1 July 2026. Read the Shopify Changelog release note here.
From 1 July 2026, the EU is scrapping the 150-euro duty-free threshold that has applied to low-value imports for decades and replacing it with a flat 3-euro customs duty per tariff line on qualifying parcels valued up to 150 euros, shipped from outside the EU. That includes shipments from the UK. If you sell to European customers and you are not already using a landed-cost solution at checkout, this change affects what your customers will see (or not see) when their order clears customs.
Shopify has updated both Managed Markets and its import tax and duty calculation product to handle this fee automatically. No settings changes are required if you are already using either product. For merchants who are not, the question is whether to address this before the deadline or absorb the risk of customs surprises post-delivery.
How the new EU duty works
The EU regulation replaces the old 150-euro de minimis exemption with a per-tariff-line charge. Customs authorities count the number of unique tariff classification lines in a parcel and apply 3 euros per line. A single-SKU parcel (say, one type of apparel) attracts one line and therefore a 3-euro duty. A parcel containing apparel, cosmetics, shoes, and jewellery would be classified across four tariff lines, attracting 12 euros in duty. The fee applies regardless of the goods’ value, provided the total parcel value is below 150 euros and the shipment originates from outside the EU.
Importantly, the duty is charged in addition to VAT. It does not replace VAT obligations, and it sits alongside any national handling fees that individual EU member states may levy. The regulation also does not affect intra-EU shipments. This is a cross-border import rule targeted specifically at goods entering the EU from third countries, including the UK following Brexit.
The EU’s own European Commission guidance on low-value consignments sets out the regulatory detail. The headline figure is the 3 euros per tariff line, but merchants shipping diverse product assortments in single parcels will find the effective duty per order scales with SKU variety, not order value.
How Shopify handles it
For merchants using Shopify Managed Markets, the 3-euro fee is calculated, displayed, and collected at checkout. Global-e acts as merchant of record and remits the duty directly to the destination country’s customs authority. Duty amounts shown to the customer at checkout are guaranteed, meaning neither the merchant nor the customer faces additional charges when the parcel arrives. This is the fully managed path: everything from duty calculation to remittance is handled on behalf of the merchant. Managed Markets has since narrowed the terms it supports, and our note on Managed Markets ending DDU support covers what that means for stores that were shipping on a delivered-duty-unpaid basis.
For merchants using Shopify’s import tax and duty calculation (without Managed Markets), the 3-euro fee is included in the duty amount calculated and displayed at checkout. The merchant is responsible for remittance, but the customer sees the correct landed cost upfront. This prevents the situation where a parcel arrives with an unexpected customs bill that the customer refuses to pay, or that triggers a return.
In both cases, no configuration changes are required if either product is already active on your store. Shopify has updated the calculation logic automatically ahead of the 1 July effective date.
What this means for UK merchants
The UK explicitly falls within the scope of this change. The Shopify changelog note calls it out directly: “This affects you if you ship to EU customers from outside the EU, including from the UK.” Post-Brexit, the UK is a third country for customs purposes, and parcels crossing from the UK into the EU are subject to the same import rules as parcels from any other non-EU origin.
For UK merchants who have been relying on the old 150-euro duty-free threshold as a selling point (lower landed costs, no customs surprises), that advantage disappears from 1 July. The 3-euro charge per tariff line is not enormous for single-SKU orders, but for merchants selling mixed-category bundles or gift sets, the cumulative duty on a single parcel can be meaningful at the margins.
Merchants who are collecting duties at checkout via Shopify’s tools will be in the best position: customers see the true landed cost upfront, there are no post-delivery surprises, and the EU’s increasing emphasis on pre-clearance and IOSS (Import One-Stop Shop) compliance is satisfied. Merchants who are not collecting duties at checkout face the risk of their EU customers being hit with unexpected charges at delivery, which historically drives refusal rates and returns.
If your checkout is not yet set up to collect duties cleanly, it is worth reviewing how the store itself is built. Our Shopify web design team configures checkout, markets and duty handling for UK merchants.
Practical considerations
If you are already using Shopify Managed Markets or Shopify’s import tax and duty calculation, there is nothing to do. The update is live. It is worth reviewing your checkout duty display to confirm the 3-euro line item is appearing correctly on test orders to EU destinations, particularly for multi-SKU parcels where the per-line calculation will produce higher totals than a simple flat fee. The parcel side is worth a look too, since Shopify Shipping now offers DHL Express labels with customs documentation generated automatically for UK merchants.
If you are not using either product, now is the time to evaluate them. The Shopify Help Center guide on EU tax migration covers the transition in detail. For merchants with significant EU revenue, absorbing unpredicted duty charges post-delivery is a worse outcome than the setup cost of implementing a duty-at-checkout solution. The 1 July deadline is firm: EU customs authorities will not be making exceptions for merchants who were unaware of the change.
FAQ
Does the 3-euro duty apply to every order shipped to the EU from the UK?
It applies to qualifying orders: parcels valued up to 150 euros, shipped from outside the EU (including the UK), containing goods that fall under a customs tariff classification. Orders above 150 euros were never eligible for the old duty-free threshold and are subject to standard customs duties as before. The 3-euro flat duty per tariff line is specific to the sub-150-euro range.
What is a tariff line, and why does it matter?
A tariff line is a unique customs classification code (HS code) applied to a category of goods. Each distinct product type in a parcel typically maps to a separate tariff line. A parcel with one type of product has one tariff line and attracts 3 euros in duty. A parcel with four different product categories has four tariff lines and attracts 12 euros. The more varied the contents of a parcel, the higher the total duty.
Does this duty replace VAT?
No. The 3-euro customs duty is charged in addition to VAT, not instead of it. It also sits alongside any national handling fees that individual EU member states may impose. The full landed cost for an EU customer includes the goods price, VAT, the new customs duty, and any applicable handling fees.
I am already using Shopify Managed Markets. Do I need to do anything?
No. Shopify has updated Managed Markets automatically. The 3-euro fee will be calculated, displayed, and collected at checkout from 1 July 2026. Global-e, as merchant of record, handles remittance to the destination country. You do not need to change any settings.
What happens if I am not using Shopify Managed Markets or duty calculation and I ship to the EU?
Your EU customers may receive parcels with unexpected customs charges at delivery. Depending on the carrier and the destination country, they may be asked to pay the duty before the parcel is released. This can lead to refused deliveries, forced returns, and damaged customer experience. It is advisable to implement a duty-at-checkout solution before 1 July 2026.
Does this affect intra-EU shipments?
No. The regulation applies only to goods imported into the EU from outside the EU. If you have a fulfilment centre inside the EU and ship from there to EU customers, those shipments are not affected. The duty applies at the border crossing into the EU from a non-EU origin country.
