EU Customs and VAT Reforms Target Low-Value Imports

The European Union is preparing a package of new rules aimed at curbing the surge of low-priced, potentially harmful imported goods from major Asian online platforms. Through a mix of EU customs reform, stricter tax measures and tighter e-commerce platform regulation, policymakers intend to tackle unfair market practices, strengthen enforcement, and provide better protection for consumers across the Single Market.

At a recent Consumer Rights Day meeting, officials from the European Commission announced that a set of legislative amendments and supporting measures is scheduled for 2026. These initiatives are designed to respond to alarming findings from recent quality and safety inspections, and to improve cross-border liability and enforcement mechanisms involving non-EU sellers and platforms.

Worrying test results from imported cosmetics

According to Commission officials, recent spot checks on cosmetics sourced from Chinese e-commerce platforms have raised serious concerns. Tests showed that up to 97% of sampled products contained substances considered harmful to human health.

These findings highlight systemic safety and compliance gaps in certain product categories sold via cross-border e-commerce channels. They have also intensified calls within the EU for more robust e-commerce platform regulation, stricter import controls and clearer accountability for non-EU platforms targeting European consumers.

Massive growth in low-value parcels entering the EU

The volume of small parcels entering the EU continues to grow rapidly. Each day, around 12 million such packages arrive at EU borders, adding up to approximately 4.6 billion parcels every year. Many of these shipments are low-value imports to EU markets, making it difficult for customs authorities to effectively inspect, tax and monitor product safety at scale.

To stem the inflow of unsafe or non-compliant goods, the EU is considering the removal of the current customs duty exemption for parcels valued at up to EUR 150. Ending this exemption, combined with stricter border controls and risk-based inspections, is expected to significantly reduce the attractiveness of routing low-quality or under-declared goods into Europe through fragmented small parcels.

Tighter VAT rules and higher compliance requirements

On the tax side, the EU also plans to tighten value-added tax (VAT) rules governing cross-border e-commerce and low-value imports to EU consumers. The Commission is considering higher registration and reporting requirements for non-EU platforms at the import stage, ensuring that VAT is correctly collected and remitted when goods enter the Single Market.

In addition, the obligations imposed on platforms participating in integrated import and VAT collection schemes are likely to be strengthened. The goal is to improve tax collection efficiency, close loopholes exploited for VAT evasion, and level the playing field between EU-based businesses and foreign sellers who currently benefit from lower effective tax burdens.

More centralized powers for EU-level investigations and sanctions

Today, most investigations into market order, unfair competition and product safety are conducted separately by the competent authorities of each EU Member State. The Commission now intends to give itself stronger, more centralized powers to investigate cross-border misconduct and impose sanctions directly at EU level.

By concentrating part of the enforcement authority in Brussels, the EU aims to deliver more consistent, faster and more effective penalties for serious cross-border violations. This shift is seen as an essential complement to broader EU customs reform, helping to ensure that rules are enforced evenly across all Member States and that non-compliant operators cannot exploit regulatory fragmentation.

Legal presence and liability requirements for non-EU platforms

Another key element of the reform package will be new legal presence requirements for non-EU e-commerce platforms that actively sell into the EU. Under the planned framework, these platforms will be required to establish a legal entity or designated representative within the EU.

This local entity would bear legal responsibility for the quality and safety of goods sold to EU consumers via the platform. The measure is intended to make it easier for regulators to supervise cross-border platforms, initiate enforcement actions where necessary, and ensure that consumers have a clear counterpart when seeking redress or filing complaints.

Expected impact on enforcement and consumer protection

Industry experts and legal practitioners broadly agree that these reforms will make it easier for enforcement bodies to apply product safety and quality standards consistently. By combining customs, VAT and e-commerce platform regulation into a more integrated framework, the EU expects to strengthen its ability to intervene when unsafe, counterfeit or non-compliant goods are shipped through cross-border channels.

For consumers, the changes should translate into simpler and more effective routes to claim compensation or lodge complaints against foreign sellers. Instead of having to navigate multiple jurisdictions, consumers would be able to pursue claims within their home country, while EU and national regulators coordinate investigations and sanctions across borders.

Roadmap: legislative package expected in 2026

The European Commission has indicated that a complete legislative package will be submitted in 2026, formally launching the EU-level law-making process. In parallel, customs authorities and market surveillance bodies are expected to further strengthen border checks, data sharing and market monitoring to better track low-value imports to EU markets.

During the drafting phase, the Commission has pledged to conduct wide-ranging consultations and impact assessments. Policymakers aim to strike a careful balance between two core objectives: protecting consumers and the integrity of the Single Market, while preserving reasonable trade facilitation for compliant businesses that rely on cross-border e-commerce as a growth channel.

compliance will be central to EU-bound e-commerce logistics

Taken together, the proposed EU customs reform, VAT tightening and new e-commerce platform regulation signal a clear shift toward stricter oversight of cross-border parcel flows into Europe. Sellers and logistics partners that depend on shipping from Asia to the EU will need to pay closer attention to customs declarations, product safety standards, VAT compliance and platform-level obligations in the coming years.

For businesses shipping from China to Europe, working with an experienced logistics partner will become even more important. Forest Shipping is an international freight forwarder specializing in compliant, end-to-end solutions from China to EU markets. From customs documentation and VAT-ready shipping options to optimized routes for e-commerce parcels, Forest Shipping helps cross-border sellers navigate regulatory change, reduce compliance risks and deliver safely to their European customers.