Upcoming changes to EU de minimis exemption to affect Australian exporters

Is your enterprise exporting goods and services to the European Union, or planning to do so soon?

With a combined population of around 450 million, the bloc has proven an attractive target market for many Australian businesses.

If yours is among them, you’ll likely already know the 27 member states that comprise the EU share a common ‘de minimis value’.

For those unfamiliar, this Latin term refers to the threshold below which goods and services are exempt from import duties and taxes.

Every country has its own de minimis value. Here in Australia, our threshold is a generous $1,000, although overseas sellers are required to add GST to almost all shipments, irrespective of their value.

In the EU, the de minimis value for customs duties is €150, and VAT (the bloc’s version of GST), set by each member state with a minimum standard rate of 15 per cent, generally applies to all goods regardless of value.

Ringing the changes in FY2027

But not for long. Come 1 July this year, the EU’s de minimis value will go down to zero. From then on, all shipments from non-member states valued at under €150 will attract an ecommerce handling fee of €3.

It’s an interim measure that will be in place until mid 2028. That’s when a new EU Customs Data Hub with the functionality to calculate percentage-based customs duties on e-commerce transactions is expected to be up and running.

The rationale for the change is an economic one: the European Commission believes the current model creates an uneven playing field for traditional retailers because they’re unable to compete with low-cost offerings from online vendors situated outside the EU.

The move mirrors actions taken by the US last year in a bid to curb the extraordinary number of packages – at that time, approximately four million a day – landing on its shores. Since August 29, 2025, overseas sellers have had to add duty to each and every shipment dispatched to the US, regardless of its value.

They’ll now need to start doing the same for EU shipments. For many Australian exporters, that may mean having to put new systems and processes in place to ensure the ecommerce fee is applied and remitted correctly on all low-value sales into the region, or risk falling foul of Customs authorities across the Continent.

Keeping on top of compliance changes

When it comes to businesses falling short on the compliance front, tax authorities the world over are not renowned for their tolerance and the EU’s Taxation and Customs Union is no exception.

Rectifying errors can be costly and time consuming, especially for Australian businesses that find themselves having to engage with entities in languages other than English.

Getting things wrong can damage your chances of scoring repeat orders too. Fail to impose the ecommerce handling fee on a shipment and there’s every likelihood it will be held up in Customs and your customer asked to pay up before it’s delivered. That’s not the sort of experience that will see shoppers singing your praises on social media or dashing off a glowing Google review.

You’ll do your brand and bottom line a favour by getting things right from the outset.

Turning to technology to tackle taxation challenges

That’s where automated tax compliance software has a vital role to play. It’s designed to make selling to customers in the EU a straightforward matter. Select the right platform and it will simplify and streamline all the tasks associated with tax compliance, including registration, licensing, calculation, document management, reporting and e-invoicing.

Ideally, you’ll opt to work with a vendor that’s committed to staying abreast of tax regulations around the globe and incorporating changes into its platform as they come into effect.

Once you’ve deployed this technology in your stack, you’ll be set to apply the current taxes and charges for all 27 EU member states, correctly and in real time, on all your shipments.

Staying on track with your EU export push

The international trade landscape is evolving rapidly, with the EU preparing to follow the US lead in scrapping its de minimis exemption and imposing new fees on low value imports.

Deploying automated tax compliance technology will allow your business to carry on selling to countries in the bloc, secure in the knowledge that you’re on top of the latest regulations and others that are coming down the pike. If you’re serious about keeping your export drive on track in FY2027, it’s enabling technology that will serve your business extremely well.

Chris Calverley, head of sales and partnerships – ANZ at Avalara