The key answer: IOSS remains the most streamlined, cost-efficient way to handle EU import VAT and provide an excellent buying experience. The €3 customs duty and VAT are separate issues. Australia Post’s current €3 duty problem does not affect EAS’s ability to provide IOSS services and collect and remit VAT correctly.
What changed on 1 July 2026?
The EU abolished its long-standing de minimis customs duty exemption for parcels valued under €150. In its place, the EU introduced a temporary flat €3 customs duty per HS code for B2C shipments entering the EU from outside the EU.
The measure runs until 1 July 2028. After that date, tariff-rate duties will apply based on simplified HS code classification.
Miscommunications and misunderstandings
Australia Post customers have received incorrect information from Australia Post customer support about the €3 duty and IOSS.
Some customers have received statements including “stop using EAS IOSS”, “IOSS and the €3 duty do not work together” and “IOSS is obsolete”.
“Stop using EAS IOSS”
Changing to another IOSS intermediary does not resolve the issue. All IOSS numbers have the same priority, serve the same function and continue to remove the need to remit VAT to customs during clearance.
Resolution of Australia Post’s issues rests solely with Australia Post. Changing IOSS intermediary resolves nothing.
“IOSS and the €3 duty do not work together”
This statement avoids the full picture. The €3 duty and VAT are two different issues, and only the €3 duty remains unresolved for Australia Post. Duty and VAT are collected and paid through different channels, while IOSS continues to streamline VAT collection.
Other postal operators use IOSS and remit the €3 duty to most EU postal operators. The statement from Australia Post is not based on reality.
“IOSS is obsolete”
IOSS remains the most streamlined, cost-efficient way to handle VAT and provide an excellent buying experience. Couriers are now beginning to refuse shipments without IOSS numbers.
The actual situation: Australia Post does not currently provide a proper payment solution for the €3 duty. This does not affect EAS’s ability to provide market-leading IOSS services or collect and remit VAT correctly.
The third-party solution aggressively promoted by Australia Post does not resolve the duty issue. This conclusion comes from Australia Post’s own information, not from EAS.
Australia Post’s current EU shipping position
Australia Post has updated its guidance and is pushing sellers to submit accurate customs data electronically. The current position still contains several significant gaps.
| Issue | Current Australia Post status |
|---|---|
| €3 duty payment | Not available. Australia Post is awaiting finalisation of EU postal partner agreements. |
| IOSS VAT handling | Not supported by Australia Post, resulting in costly customs clearance, heavy charges for end consumers and refused deliveries. |
| Delivery model for the €3 duty | DAP only, Delivered at Place. The buyer pays duties and the carrier’s collection fee at the door. |
| Denmark | Service suspended from 1 July 2026. No reinstatement date confirmed. |
| Romania | Service at risk, pending regulatory confirmation. |
| Returned parcels | Customs duties and handling fees on returned or refused shipments are non-refundable. |
Solutions that work now
Courier services
Couriers use centralised clearance, which removes most of the issue.
Solutions in the future
Australia Post
Once Australia Post improves its systems, it will again be a very good option for Australian ecommerce sellers shipping to the EU.
The situation is evolving rapidly. EAS will keep customers informed as the shipping routes develop.
The solution coming soon: EAS EU Postal DDP for Australia
EAS Postal DDP is already live for the UK, with Australia next
EAS launched EAS Postal DDP for UK-to-EU shipments through Royal Mail at the beginning of July 2026. The service is explicitly designed for postal operators and their merchant customers.
Australian merchants using Australia Post will be among the first non-European postal routes added to the EAS Postal DDP platform.
The model is already proven. EAS Swiss Post DDP is live for Switzerland-to-EU shipments and provides:
- Zero EU VAT registrations
- Zero setup fees
- DDP at postal rates, not courier rates
- Full automation from checkout to customs clearance
- Coverage across all 27 EU member states
- Automatic refunds of 90% of VAT on returned items
Australia is next: EAS EU Postal DDP for Australia is being prepared for Australian merchants using Australia Post.
What Australian sellers should do right now
EAS Postal DDP for Australia is being prepared. While it is coming, Australian sellers should take the following immediate steps.
Immediate checklist for Australia Post EU shipping
- Warn EU customers at checkout. Until DDP is available, buyers will be asked to pay the €3 duty and customs clearance fees on delivery. Disclose this clearly to avoid refused deliveries and disputes.
- Audit your HS codes. The €3 duty is charged per HS category. Incorrect or missing codes create unexpected duty charges and customs delays.
- Structure customs line items correctly. Customs still considers line items, not only HS codes. Place products with the same HS code on the same line in the customs data.
- Use electronic customs data. Submit through MyPost Business, eParcel or the Australia Post Shipping API. Paper declarations face an increasing risk of delays at EU customs.
- Pause Denmark shipments. Service has been suspended since 1 July 2026. Monitor Romania.
- Register with EAS for IOSS now. EAS IOSS handles VAT automatically at checkout for orders under €150. Completing the EAS setup in advance provides a seamless transition when Australia Post DDP launches.
- Register your interest in EAS EU Postal DDP. Register at easproject.com/postal-ddp.
Bottom line
The €3 duty does not make IOSS obsolete. IOSS continues to provide the most streamlined and cost-efficient way to handle EU import VAT, while the customs duty follows a separate payment route.
Changing IOSS intermediary does not fix an Australia Post systems issue. Keep EAS IOSS active, prepare customers for DAP charges, review customs data and register for the EAS EU Postal DDP launch in Australia.
Prepare for EAS EU Postal DDP in Australia
Register your interest in EAS EU Postal DDP and keep EU VAT automated through EAS IOSS while the Australia Post route is being prepared.
Article scope: Australia Post, EAS IOSS, the EU €3 customs duty and the EAS EU Postal DDP solution for Australian ecommerce sellers.