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EU to impose flat tax on small items ordered online, FT reports

Published by Global Banking & Finance Review

Posted on May 20, 2025

1 min read

· Last updated: January 23, 2026

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EU Proposes Flat Tax on Small Online Orders to Ease Customs

(Reuters) -The European Union plans to levy a flat fee on billions of small packages entering the bloc, mainly from China, the Financial Times reported on Tuesday, citing a proposal.

The European Commission circulated a draft proposal on a handling fee on Monday after pressure from member states whose customs authorities are overwhelmed by the 4.6 billion items annually imported directly to people's homes, the newspaper added.

The proposal does not set a fee level, but the newspaper reported it would be about 2 euros ($2.25), citing people familiar with the commission's thinking.

($1 = 0.8902 euros)

(Reporting by Dheeraj Kumar in Bengaluru; Editing by Hugh Lawson)

Key Takeaways

  • EU plans a flat tax on small packages entering the bloc.
  • Proposal targets mainly Chinese imports.
  • Customs authorities overwhelmed by 4.6 billion items annually.
  • Proposed fee is approximately 2 euros per package.
  • Draft proposal circulated by the European Commission.

Frequently Asked Questions

What is the main topic?
The EU's proposal to impose a flat tax on small online orders, mainly from China, to alleviate customs pressure.
How much is the proposed tax?
The proposed flat tax is approximately 2 euros per package.
Why is the EU proposing this tax?
To ease the burden on customs authorities overwhelmed by billions of small packages.

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