The introduction of the new EU customs duty is driven by fiscal, competition law, consumer protection, and administrative considerations. In addition, the current exemption threshold has encouraged abusive practices such as undervaluation and artificial splitting of consignments, while effective enforcement by authorities has become practically impossible.

Steps in introducing the new EU customs duty

1. Transitional flat-rate duty from July 2026

Under the new EU rules, the customs duty exemption for import consignments below EUR 150 will be replaced by a transitional flat-rate duty of EUR 3 between 1 July 2026 and 1 July 2028. This transitional charge applies to goods arriving via courier, commercial, and postal channels alike.The EUR 3 duty is not charged per parcel, but per product category within the consignment, following the logic of tariff subheadings. The amount is included in the VAT base, which increases VAT liabilities. Businesses will therefore need to adopt new methods for calculating the import VAT base.

2. Handling fee from November 2026

From November 2026, an EU-wide handling fee is expected to be introduced for low-value consignments. Some Member States (e.g. Romania, Italy, France) have already implemented similar national fees.

3. Tariff-based duties from July 2028

Following the planned launch of the EU Customs Data Hub in July 2028, the transitional flat-rate duty will be replaced by standard EU customs duties based on tariff classification, supplemented by a uniform EU handling fee.

Why is the new regulation necessary?

The dismantling of the de minimis threshold and the introduction of the new EU customs duty were made inevitable by the explosive growth of low-value e-commerce imports. According to the European Commission:

• In 2022: 1.39 billion consignments
• By the end of 2025: approximately 5.9 billion consignments
• In 2025: 97.9% of all imported items fell into this category, while accounting for only 2.1% of total import value

93% of these goods originated from China.

Another major driver of the stricter regulation is product compliance risk:

• more than half of electronic products did not comply with EU standards
• 84% of tested samples were found to be unsafe
• non-compliance rates: cosmetics 65%, PPE 60%, food supplements 63%

The abolition of the customs exemption is therefore not only a revenue measure, but also a market surveillance response.

Scope of the EUR 3 transitional duty

The new EU customs duty of EUR 3 per item mainly affects businesses using the EU’s special VAT scheme, the Import One Stop Shop (IOSS). This system allows importers to declare and pay the VAT on non-excise goods valued at up to EUR 150 imported from third countries through a single Member State.

In practice, the affected parties primarily include:

• non-EU online retailers, digital marketplaces and platforms using IOSS
• IOSS-registered traders
• indirect representatives of IOSS-registered traders
• logistics providers handling customs clearance

Given that such low-value transactions conducted via IOSS represent a significant share of EU e-commerce imports, the changes directly impact the largest market players.

Although the precise legal scope of goods covered by the new EU customs duty is still subject to legislative clarification, it is already clear that it will primarily apply to consignments related to online sales. The concept of distance selling under VAT rules will likely serve as the main reference point.

What does this mean for customs procedures?

Although the provisions are not yet final, the draft legislative amendment already addresses technical and administrative changes to customs procedures, particularly regarding customs declarations:

Reduced data set H7 customs declaration

• limited to e-commerce B2C distance sales transactions
• remains applicable for goods with an intrinsic value not exceeding EUR 150, regardless of IOSS usage or whether postal or express procedures are applied
• not applicable to goods subject to prohibitions and restrictions (P&R)

Full data set H1 customs declaration

• mandatory for all non-distance sales transactions (typically B2B)
• mandatory for all goods subject to P&R

The H1 procedure continues to apply standard customs duties and existing valuation rules, including preferential tariffs based on international agreements. However, in distance sales scenarios, the H1 procedure does not exempt goods from the EUR 3 flat-rate customs duty.

Technical and system-level changes

The regulation also introduces significant technical clarifications. It defines the concept of an “item” as one or more goods sharing the same tariff classification, description and, where applicable, origin. This is crucial, as the EUR 3 duty is calculated based on these units.

Furthermore, the coding system will also change: for example, the F53 additional procedure code will be introduced, which is specifically linked to e-commerce, while certain existing codes – such as C07, indicating customs duty exemption – will be phased out. In addition, new TARIC document and reference codes (such as C127, C128, C129, and Y081), as well as a new preference code element, will be introduced for the calculation of the EUR 3 new EU customs duty under the H1 procedure.

The introduction of the new EU customs duty means that businesses must not only revise their IT and customs systems, but also review contractual structures, pricing models and IOSS processes. They must prepare separately for the transitional period between 2026 and 2028 and the subsequent standard tariff environment. If you need expert support, our customs advisers are ready to assist.

A New EU customs duty in e-commerce from 1 July 2026 bejegyzés először WTS Klient Hungary | tax | accounting | payroll | advisory | HR services | digital solutions | state aid-én jelent meg.

DAC7 Directive

Member States had time until 31 December 2022 to transpose the provisions of the DAC7 Directive into their national law. Similarly to its predecessor, in Hungary the directive resulted in an obligation to report information to the tax authorities, and in this case the taxpayers are the digital platform operators.

Known as DAC7 (2023/514/EU), the amendment to Directive 2011/16/EU on administrative cooperation in the field of taxation aims to prevent tax fraud, avoidance and evasion by businesses that offer their products or services on digital platforms, mainly in cross-border transactions.

Who is subject to the obligations?

The obligations included in the Hungarian legal system with the amendment of Act XXXVII of 2013 increase the administrative burdens for digital platform operators. (Similar to various other elements of the 2023 tax law amendments, this amendment took effect at the beginning of 2023.) Digital platform operators are organisations that provide sellers (including organisations and individuals) with platforms accessible to users (buyers). Whether we are talking about websites or applications, this can cover any platform that allows for the establishment of a link between the seller and the user for the direct or indirect performance of the so-called “relevant activity” for the users.

However, the reporting obligation does not extend to software that is used only for

• handling payments related to the relevant activity;
• users to display or advertise the relevant activity;
• redirecting or moving users to some platform.

Moreover, it is not only Hungarian companies that are subject to the obligation, but also EU companies that are registered in Hungary and have their permanent establishment and place of business in Hungary. In certain cases, non-EU companies can also be subject to the reporting obligation.

This means, for example, that in addition to a Hungarian company offering an online marketplace, well-known multinational platform operators such as Amazon, eBay, Booking.com or Airbnb must also report data to the authorities.

What needs to be done, and by when?

1. Registration

The platform operator must register with the tax authority within 15 days of becoming a platform operator subject to the reporting obligation. (The first registration deadline for existing digital platform operators was 15 February 2023.)

EU businesses that meet the above conditions must register with the Hungarian tax authority even if they choose to report their data in another Member State.

2. Due diligence

The due diligence tasks include obtaining and verifying the details of the selling individual or organisation (e.g. checking tax number), establishing their domicile, and in the case of a property rental, obtaining information about the property. The due diligence procedures required for reporting the data must be completed by the end of the reporting period, by 31 December.

3. Keeping records

Records of the due diligence and reporting arrangements as well as of the underlying information shall be kept and retained for a period of ten years.

4. Data reporting

The data must be reported once a year, for one calendar year, but on a quarterly basis, by 31 January of the following year. The first reporting deadline for 2023 is 31 January 2024.

What has to be reported?

In specific cases, the data must be provided for the following relevant activities carried out for consideration:

• the rental of immovable property, including both residential and commercial property, as well as any other immovable property and parking spaces;
• personal services;
• the sale of goods;
• the rental of any mode of transport.

However, exemptions are possible, among others, for sellers to whom digital platform operators have facilitated less than 30 sales of goods for less than EUR 2,000, or facilitated more than 2,000 relevant activities by means of the rental of immovable property.

In addition to a range of information on the sellers, the reporting must also include the number of transactions, the amount of consideration, and where applicable, the bank account used.

Penalties

If the digital platform operators fail to fulfil their registration, change notification, data reporting and record-keeping obligations, or fulfil them late, incorrectly, with untrue content or incompletely, the tax authority may impose a default penalty of up to HUF 2 million.

What do the tax authorities use the information from the digital platform operators for?

Reporting is the responsibility of digital platform operators, but sellers should also be aware of the potential tax inspection implications. This is because Member States use the data to exchange tax information in order to support the controls carried out by the authorities of each Member State.

With the proliferation of online sales platforms, cross-border services and product sales have become easy for all businesses to carry out, but at the same time, these transactions have often provided a breeding ground for aggressive tax planning. If the tax authorities have uniform information from platform providers at a European level, it will be easier for them to assess – in the context of local risk assessment procedures – the likelihood that a foreign person or organisation will incur a tax liability in their country for a business activity, be it VAT (see: distance selling) or income tax.

From the perspective of digital platform operators, the new reporting obligations require caution given the detailed rules and the numerous deadlines. A foreign seller also needs to assess exactly what tax obligations their cross-border activity entails. Whichever side you are on, if you need assistance with the related compliance work, our tax department will be happy to assist you.

A Reporting obligation for digital platform operators bejegyzés először WTS Klient Hungary | tax | accounting | payroll | advisory | HR services | digital solutions | state aid-én jelent meg.

Most important elements of the new regulation 

The goal of the European Commission is to standardise and simplify the VAT rules that affect e-commerce. They basically want to make cross-border commerce easier, create a level playing field, and reduce the administrative burdens of businesses. The most important elements of the new regulation:

• expansion of the application of one-stop shop systems,
• transformation of the rules on product imports (import one-stop shop, termination of tax-exempt status for low-value imported packages, i.e. below EUR 22),
• inclusion of electronic platforms (intermediaries) in taxation in certain cases,
• change in definition of distance selling.

Wider application of one-stop shop systems 

The one-stop shop system currently available is the so-called MOSS system (Mini One Stop Shop), which is only applicable for services that can be provided at a distance (telecommunications, electronic, radio and audiovisual services). From 1 July, the name of the MOSS system will change to OSS and its application will be extended with all the services provided for non-taxpayers where the place of performance is in the Member State where the consumption took place, and with distance selling. Within the OSS we can distinguish between EU and non-EU one-stop shop systems depending on which transactions these can be applied for. Additionally, a separate one-stop shop system will be created for the distance selling of products with an intrinsic value of no more than EUR 150, imported from a third country: the IOSS (Import One Stop Shop).

Common features of one-stop shop systems 

Perhaps the most important common characteristic of all three one-stop shop systems is that selecting them is not mandatory, just an option. Businesses that use the one-stop shop systems can decrease their administrative costs significantly. The essence of these systems is that taxpayers fulfil their tax obligations affecting several Member States simultaneously by submitting one tax return in one specific Member State, thus sparing the need to register in the other Member States.

An additional common characteristic of one-stop shop systems is that there are no rights of deduction. Deductible taxes can basically be reclaimed through tax refunds. In certain cases, the given taxpayer may be registered in the Member State where the registration took place. In this case, the right to deduction can be applied in the tax return submitted in the given Member State.

Change in the rules of distance selling 

The definition of distance selling will change as of 1 April, and from that time onwards there will be two types of distance selling: intra-Community distance selling and the distance selling of imported products.

The thresholds defined by the individual Member States will be cancelled, including the threshold of EUR 35,000 in the case of Hungary for example, while taxpayers using distance selling can register in the one-stop shop system and settle their tax liabilities in respect of several Member States simultaneously.

Let’s take an example. A company based in Hungary conducts distance selling from Hungary to several states of the EU (Germany, Austria, Slovakia). Based on the rules prior to 1 July, the company must monitor whether the value of its sales to the individual Member States exceeds the threshold in the given Member State (e.g. in the case of Germany it is EUR 100,000). If not, it can issue invoices with Hungarian VAT, but if the threshold is exceeded, it has to register in the given Member State. Based on the rules valid from 1 July, if the above Hungarian company selects the one-stop-shop system it must file its tax return and pay (via the return) the VAT on its sales to the other Member States (according to the VAT rates valid in the given Member State), thereby avoiding the need to register in the other Member States. It is important for the Hungarian company to report its sales with a place of performance in Hungary in VAT tax return no. 65, and not in the one-stop shop system.

Filing of tax returns

Tax returns must be filed electronically in each of the one-stop shop systems: quarterly in the EU and non-EU one-stop shop system, and monthly in the import one-stop shop system. The deadline for the tax returns and the payment of taxes is the last day of the month following the given tax assessment period.

Taxpayers registered in Hungary’s one-stop shop system should prepare their tax returns in HUF, while for conversions, the exchange rate published by the European Central Bank and valid on the last day of the tax assessment period should be applied.

Adjustment of tax returns

If the tax returns already submitted must be revised, taxpayers can do so in a subsequent tax return within three years of the filing deadline of the original tax return. Revisions are possible even after three years, but within the limitation period. Yet this is not done in the one-stop shop system, you should contact the competent tax authority in this matter.

Transitional rules

Taxpayers have the opportunity to register in one of the one-stop shop systems from 1 April 2021. Taxpayers already registered in the one-stop shop system as of 1 April 2021 because of services that can be provided from a distance do not have to register again. However, they should not forget to report some data to the national tax and customs authority by 15 June. But taxpayers already registered in the one-stop shop system and who now want to use it as a distance seller must register in the EU’s one-stop shop system.

Problem of online data reporting for invoices

In line with previous announcements, from 4 January 2021 the online invoice 3.0 system was launched in Hungary as the third and final step of extending online data reporting for invoices in Hungary. Upon the introduction of online invoice 3.0, the data reporting obligation for invoices is extended, among others, to include invoices issued to non-taxpayers, such as natural persons. While the VAT law exempts taxpayers registered in the one-stop shop system in Hungary from online invoice data reporting, this exemption is only valid from 1 July. Consequently, taxpayers who currently conduct distance selling and who wish to utilise the opportunities offered by the one-stop shop system from 1 July, would still have six months to fulfil their Hungarian online invoice data reporting obligation. Nevertheless, to be able to bridge this half-year period and gain exemption from the data reporting obligation, these taxpayers can utilise the moratorium until 30 June (that is originally in force until 31 March for other taxpayers), provided that they register in the one-stop shop system in their home country until 1 July and they make only distance selling to Hungary).

Although one-stop shop systems represent significant administrative easing for enterprises, it is obvious that companies involved in e-commerce should prepare for important changes from 1 July. It is worth starting to prepare in time. If your company is affected, please do not hesitate to contact our tax consulting team.

A One-stop shop systems in international e-commerce bejegyzés először WTS Klient Hungary | tax | accounting | payroll | advisory | HR services | digital solutions | state aid-én jelent meg.