EU ends €150 duty-free threshold, raising costs for SHEIN and Temu shoppers

The removal of the low-value parcel exemption adds VAT and handling fees to cross-border e-commerce, pressuring margins for ultra-fast fashion platforms and potentially dampening consumer spending.

By Handelsavisen Newsroom · Automated 2026-07-01 08:04 UTC · 1 min read

The European Union has eliminated the customs exemption for low-value imports, ending the era of duty-free shopping for online purchases under €150.

The new rules, which took effect on July 1, require VAT and import charges on all parcels arriving from third countries, directly impacting major cross-border e-commerce platforms such as SHEIN, Temu, and AliExpress.

This regulatory shift removes a key competitive advantage for ultra-fast fashion retailers that have relied on low-cost shipping and tax-free pricing to attract European consumers.

With the exemption gone, shoppers will now face additional costs at checkout or upon delivery, likely leading to higher cart abandonment rates and reduced order volumes for these platforms.

The change also increases administrative burdens for logistics providers and customs authorities across the bloc.

The move is part of a broader EU effort to level the playing field between domestic retailers and foreign online sellers, who previously operated without the same tax obligations.