Cyprus joins EU-wide move to tax low-value imports

Consumers in Cyprus purchasing goods from outside the European Union will face a temporary flat-fee duty of €3 per item starting July 1, 2026, according to guidance released by both the European Commission and the local Customs Department.

This new customs regulation applies to all low-value consignments of up to €150 imported from non-EU countries, effectively abolishing the duty exemption that was in place until June 30, 2026.

The €3 charge is a temporary measure scheduled to remain in effect until July 1, 2028, after which standard customs duties will apply based on the specific category of the goods.

This initiative forms a core part of the EU’s Customs Reform, a broader project designed to modernise customs procedures and ensure higher levels of fairness, safety, and sustainability across the e-commerce sector.

The commission stated that evidence suggests that a substantial proportion of low-value e-commerce imports have historically failed to meet EU safety and compliance standards.

It added that this creates risks for consumers and undermining fair competition for local retailers.

While the original duty-free rule was introduced to avoid excessive administrative burdens, the digitalisation of customs procedures now ensures that electronic data is available for all imported goods, rendering the previous exemption unjustified and out of step with market realities.

In 2025 alone, nearly 5.9 billion low-value items were shipped directly from third countries to consumers in the EU without incurring customs duties.

Targeted inspections conducted across the 27 EU member states throughout 2025 on products ranging from cosmetics and toys to electronics revealed alarming levels of non-compliance, with over 60 per cent of checked items failing to meet EU standards due to missing safety documentation, forbidden ingredients, or incorrect labelling.

The commission said that the new €3 duty is intended to level the playing field, ensuring that all businesses bringing goods into the EU market are subject to duties and held to the same high standards as local enterprises.

These rules apply to distance sales of imported goods, and to further enhance safety, product identifiers will become mandatory from November 1, 2026, though they may be declared on a voluntary basis starting July 1, 2026.

As previously clarified by Cyprus’ Customs Department, the exemption from duties and VAT remains in force for non-commercial gifts valued up to €45 sent between private individuals, provided no payment is involved.

The department added that this duty is calculated per distinct item, added to the taxable value for VAT purposes, and must be borne by the final consumer.