European cross-border e-commerce sellers have long grappled with the continent's patchwork of tax policies. Now, Belgium's recent policy reversal—abandoning its planned €2 small parcel tax in favor of the EU's unified €3 tariff—signals accelerating tax reforms that will significantly impact Chinese e-commerce merchants.
Belgium's Policy Reversal: A Strategic Retreat
Last October, Belgian authorities proposed taxing sub-€150 non-EU parcels with a €2 fee, anticipating 1.4 billion annual imports by 2025. The measure aimed to ease customs pressure and level the playing field. However, this unilateral approach was shelved within months to align with broader EU reforms.
The decisive moment came in November 2025 when EU finance ministers agreed to eliminate the €150 tax exemption by early 2026—two years ahead of schedule. Belgium, home to Liege Airport's 3-million-daily Chinese parcel processing hub, had little choice but to conform, avoiding potential double taxation issues and maintaining its logistics competitiveness.
EU Tax Reform: Reshaping Cross-Border Commerce
The EU's accelerated timeline responds to explosive growth in Chinese e-commerce. With 4.6 billion low-value parcels entering the EU in 2024—90% originating from China—the reforms seek to standardize taxation, combat evasion, and protect domestic businesses.
For Chinese sellers, this represents both challenge and opportunity. While profit margins on small-ticket items will compress, the changes incentivize moving beyond price competition. Only sellers with robust supply chains and differentiated offerings will thrive under the new regime.
Strategic Adaptation for Cross-Border Sellers
Forward-thinking merchants should consider these strategic adjustments:
- Leverage overseas warehouses: Bulk shipping and local fulfillment avoids per-parcel tariffs while improving delivery speeds.
- Elevate product mix: Shift from low-margin commodities to distinctive, higher-value offerings.
- Strengthen compliance: Ensure full adherence to evolving EU regulations across all transactions.
- Diversify markets: Reduce reliance on any single region through strategic global expansion.
- Optimize logistics: Streamline supply chains to offset new tariff impacts through efficiency gains.
The EU's reforms reflect broader global trade realignment. With France previously proposing €2 tariffs and Romania suggesting €5, this "tariff competition" creates new complexities for international e-commerce. Sellers demonstrating adaptability, innovation, and compliance will be best positioned for long-term success in this evolving landscape.