Fruugo update on EU tax and duty changes for low value consignments

Fruugo have updated their sellers, who supply goods to EU customers from a place outside of the EU, on changes to tax and duty for low value consignments. While there are EU wide changes coming, certain countries (Italy and Romania) are going ahead in the interim making changes of their own which just serves to further complicate the situation for sellers.

Low value consignments – EU changes

Background

In recent years there has been a significant increase in low value parcels entering the EU without detailed checks being carried out on them which are posing an administrative challenge to EU customs authorities.

A number of reforms have been proposed in relation to the EU customs system which will impact the way in which marketplaces and retailers sell into the EU. One significant change expected is the removal of the EUR 150 low value consignment threshold. This threshold allows for consignments not exceeding this value to benefit from customs relief meaning that customs duties are not typically payable on imports into the EU of these consignments. The proposal to remove this threshold is due to be implemented in 2028 however temporary measures have been agreed in the interim:

1. The introduction of an EU wide fixed handling fee/tax – this is currently proposed to be implemented from 1 November 2026 however this could be sooner and some individual countries are choosing to implement this already and
2. The introduction of a fixed customs duty of €3 on these low value parcels – this is planned to be introduced from 1 July 2026.

Certain EU member states are introducing their own fixed handling fee/tax in the interim period which will be replaced by the EU wide fee/tax once implemented.

In accordance with Fruugo’s Retailer Terms and Conditions, you as the retailer, are responsible for all Customs related fees and charges. Fruugo treats compliance with Customs obligations extremely seriously and we expect full cooperation from all retailers using the Fruugo platform.

Key Point Summary and actions for you

Certain countries within the EU are implementing handling charges which will be payable when packages enter the EU from countries outside the EU.

For relevant shipments of goods into these countries, Fruugo will add these charges to the basket price of your goods.  Fruugo will collect these funds from the shopper to cover any tax payable.  These taxes could be payable by Fruugo, the retailer, or the shipping agent.  

• Fruugo will add the handling fee/taxes into buyer prices
• Where Fruugo has the responsibility for the payment of handling fees/taxes directly to an authority, it will ensure this obligation is fulfilled.
• Where you have responsibility for the payment of or for passing on payment of handling fees/taxes to carriers/parcel operators, you should ensure this obligation is fulfilled.
• Retailers should review pricing of items sold on the Fruugo platform, especially immediately for those EU member states seeking to introduce handling fees/taxes sooner (e.g. Romania).
• You will be expected to bear the cost of handling fees/taxes in the event of buyer returns and therefore we recommend this is factored into any pricing reviews. In addition, should a buyer incur the fee directly and have to pay this over to an authority, we will reimburse the buyer for this fee and we will seek to recoup this from you, where we have not retained this amount (e.g. due to us having already paid this over to you).
• Currently Italy and Romania have implemented fixed handling fees, and Fruugo will continue to update the appendix to this page as matters develop.

Handling fees/taxes

Which European countries are in the European Union?

The following are within the EU (European Union): Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain and Sweden

Which EU member states are seeking to implement handling fees/taxes sooner?

This continues to be a moving piece but at the time of writing Romania and Italy are the primary two EU member states that have finalised the implementation of a fee/tax at a national level in a finalised legislation and these will be introduced from 1 January 2026. This however continues to be a moving piece and is something we are continuing to monitor/adapt to and will update the appendix for.

Are the national level handling fees in EU member states all calculated in the same way?

No – some EU member states are seeking to implement the fee on a “per parcel” basis (e.g. Romania and Italy) whereas others are exploring implementing the fee on a HS line item basis (e.g. France and Netherlands).

The rate at which the handling fee/tax is charged may also vary per member state but for Romania the fee applies at a rate of 25 lei per parcel and in Italy the fee applies at a rate of €2 per parcel.

The responsibility and liability for payment of the handling fees/taxes also appear to be varying per EU member state.

Once an EU wide fixed handling fee/tax is introduced, we anticipate this should ensure consistency across the EU.

Does it apply to all orders?

No – the handling fee/tax will apply only to low value consignments imported into the EU from a place outside of the EU (e.g. a low value consignment not exceeding €150 shipped from China to Romania).

The fixed customs duty of €3 will also only apply to low value parcels imported into the EU. This will be a temporary solution until the full removal of the threshold in 2028.

Duties (where applicable) currently apply to consignments imported into the EU above this threshold and this will remain unchanged.

Do I need to change my pricing?

We will be ensuring that prices charged to shoppers are uplifted to reflect relevant handling fees/taxes and duties. Please see paragraphs below for further details on timescales. This means you need not increase the price you list products with Fruugo to cover these charges. Given the impact this will have on the price we list your good at, we recommend you review the price of products sold on the platform to ensure they are still competitive recognising we will add the uplift to reflect the relevant handling fees/taxes and duties.

Will retailers receive a refund of the handling fee/tax in the event of a return by a buyer?

No – at the time of writing, EU member states which have published guidance/legislation have made clear that the handling fee/tax will not be refunded in the event of a buyer return. This requires the retailer to bear the cost of any fees already paid in the event of a buyer return.

In the event of a cancellation of an order prior to shipment commencing to the buyer, we would not expect a fee to be paid in relation to these as no parcel will have been imported into the EU.

Are there any transitional procedures in place?

Unfortunately, due to how quickly EU member states have implemented national handling fees, no transitional procedures have been proposed. As such, we expect some orders that have been placed prior to the implementation of measures by EU member states (e.g. 1 January 2026 for Italy and Romania) but which the import takes place after this date will be subject to the fee. Although this is the case, no fee will have been collected at the point of sale for these due to short notice of the fees being implemented. In the short term, you may incur fees for these shipments which will unfortunately represent a cost. We expect this to be the case until the point of sale solution is implemented for each country. The point of sale solution was implemented from Monday 5 January 2026 for Romania and Tuesday 6 January 2026 for Italy.

What do I need to do?

• Review current practices. Fruugo’s pricing assumes that only one parcel will be shipped for each order. In future, if orders are shipped in multiple parcels, you will need to bear the cost of the additional fee that may arise.
• When reviewing pricing, we recommend reflecting on the cost of buyer returns given that the handling fees/taxes are non-refundable by authorities.
• You will need to ensure handling fees/taxes are passed onto carriers/parcel operators where these parties have the responsibility to pay amounts to the tax authority. Similarly, where you are responsible for the payment of these fees, you should ensure payment of these to the relevant authorities. Failure to do so, or should an authority request payment directly from Fruugo of any relevant handling fees/taxes or duties, and in accordance with our Retailer Terms and Conditions, we reserve the right to deduct this from funds due to you. In the event of severe non-compliance, your account will be escalated for investigation and you may be suspended from selling on the Fruugo platform.
• Ensure discussions are entered into with relevant carriers/parcel operators to understand the steps they are taking to address these matters.

Fixed customs duties

The EU will also be introducing a fixed customs duty of €3 on these low value parcels which is planned to be introduced from 1 July 2026. This will be in addition to the fixed handling fee/taxes. Fruugo is currently working to implement a solution in relation to these fixed duties and will issue further communications on this as we get closer to the implementation date.