If you sell physical products to customers in the EU, the compliance landscape has changed significantly since 2024. And it's still changing.

RepGuardia started serving clients as soon as the GPSR legislation came into effect in December 2024, but even we have noticed the huge shift in demands on small businesses and the added requirements that you need to comply with in order to sell your products into the EU. 

This isn't a post designed to put you off selling into Europe - RepGuardia was founded on the very principle that we want to help more small businesses we know and love sell their incredible wares in the Europe.

The EU remains one of the most valuable markets available to small businesses, and we really believe it's still very much accessible.

But the list of things you need to know before you ship has grown since we started in 2024/25.

The businesses that thrive in the EU are the ones who understand what applies to them and have got it sorted. And that's what RepGuardia continues to strive to help you with. The understanding and the compliance. 

This post covers the six key areas of EU regulation that small product businesses selling from outside the EU need to be aware of in 2026.

It focuses on physical, low-risk products shipped direct to EU consumers. It doesn't cover food, chemicals, pharmaceuticals, or B2B sales, which have additional rules of their own and aren't what RepGuardia cover with our EU Authorised Representation Service - we support small, low risk product businesses.

1. GPSR: General Product Safety Regulation

This is the regulation that launched in December 2024 and the one our clients come to us about first - it's the foundation of why we started RepGuardia and offer our EU Authorised Representation Service. The GPSR requires that any physical product sold to consumers in the EU is safe, and that the business responsible for it is reachable.

If you're based outside the EU and you sell physical products to EU customers, you need an EU Authorised Representative. That's a legal entity based inside the EU who holds your technical documentation (including risk assessments) and can be contacted by EU market surveillance authorities if questions arise about your products.

RepGuardia acts as EU Authorised Representative for small businesses. If GPSR is where you need to start, you can find out how our service works here.

We've also written in detail about GPSR documentation, risk assessments, and what the process looks like on the RepGuardia blog.

2. The €3 EU Customs Levy on low-value parcels

From 1 July 2026, the EU removed the longstanding exemption that allowed parcels valued under €150 to enter the EU without customs duty. In its place, a temporary flat €3 customs duty now applies per item on low-value consignments sent from outside the EU to EU consumers.

This applies to every parcel under €150, regardless of what's inside it. It sits on top of any VAT obligations and is separate from carrier handling fees, which some EU member states are also introducing.

The practical questions you need to answer are:

• Will you absorb the €3 or pass it on to the customer?
• Is your checkout showing the full cost before payment?
• Do you have accurate product codes and descriptions on your customs paperwork? Authorities now require precise HS codes and declared values. Vague descriptions like "accessories" or "gift" are no longer sufficient.

We've written a full post on what the €3 levy means for small businesses and how to approach it: read it here.

The €3 duty is a transitional measure and is expected to remain in place until 1 July 2028, when the EU Customs Data Hub comes online and normal duty rates based on product classification will apply instead

3. IOSS: Import One-Stop Shop for VAT

IOSS is an EU scheme that allows businesses selling low-value goods (orders of €150 or less) directly to EU consumers to collect and pay VAT at the point of sale, rather than having it collected at the EU border.

Without IOSS, your customer may be charged VAT at the door when their parcel arrives. That leads to delays, unexpected costs, and, in many cases, customers refusing to pay and returning the parcel.

IOSS registration is handled through a single EU member state and covers sales to all 27 EU countries. You submit a monthly VAT return and pay the VAT collected across all your EU sales in one place.

IOSS is outside RepGuardia's direct scope, but we can point you to trusted specialists who handle it. 

Note: the €3 customs levy and IOSS are separate obligations. IOSS covers VAT. The €3 is a customs duty. Both can apply to the same parcel.

4. EU Packaging and EPR Legislation

Extended Producer Responsibility (EPR) requires businesses that sell products into the EU, including those based outside the EU, to register with and contribute financially to packaging recovery schemes in each EU member state where they sell.

The detail varies by country. Germany has the strictest requirements, with its LUCID/VerpackG system requiring all businesses placing packaged goods on the German market to register at verpackungsregister.org and declare their packaging volumes annually. This is a producer obligation and cannot be delegated, but registration itself is free and done directly.

EU-wide EPR legislation is coming into force from August 2026, which will bring more consistency across member states but also expand the scope of what's required.

This is an area RepGuardia is actively developing support around. If you want to be kept informed as this develops, get in touch and we'll add you to the list. Or help us by taking our quick survey as we decide how to expand our services to cover this.

5. EUDR: EU Deforestation Regulation

This is the regulation most small businesses haven't heard of yet, but for some it will be significant. We're already getting questions from our clients who make stationery - cards, books, notebooks etc. And it will affect them, and maybe you too. 

The EUDR requires that seven commodities (wood, cocoa, coffee, soya, palm oil, cattle, and rubber) and products derived from them are deforestation-free and legally produced before they can be placed on the EU market.

A due diligence statement must be submitted through the EU's information system before those products are sold to EU customers.

For small businesses, what this means in practice depends entirely on your products. If you sell any of the following, you need to check whether EUDR applies to you:

• Wooden products: toys, homewares, stationery, furniture, frames
• Paper and card products: greetings cards, notebooks, packaging, wrapping paper
• Leather goods: bags, accessories, belts, wallets
• Products containing cocoa, coffee, soya, or palm oil derivatives (including some soaps and cosmetics)
• Products containing rubber

The compliance deadline for small and micro enterprises is 30 June 2027. Larger businesses must comply by 30 December 2026.

EUDR compliance is outside RepGuardia's scope, but we'd encourage any small business with products in these categories to start investigating now - it's something we're working to see if we can build webinars, products and services around. If you think you'd like our help with this, complete our survey as we're actively looking at this currently. 

The due diligence required involves tracing your supply chain back to the land where the commodity was produced, which takes time to pull together. The EU EUDR Information System is expected to reopen in stages from June 2026.

6. GDPR and EU Data Protection

If you collect personal data from EU customers, including email addresses, names, delivery addresses, or purchase history, GDPR applies to you regardless of where your business is based. And if you're a small business with a basic email list or previous purchaser list, then that includes you. 

Under Article 27 of the GDPR, businesses established outside the EU that process personal data of EU residents and are not exempt must appoint an EU Representative. This is a separate obligation from GPSR representation, though the role is complementary.

Exemptions exist for businesses that process personal data only occasionally, that don't handle sensitive data at scale, and that are unlikely to cause risk to individuals' rights and freedoms.

But if you run an email list, take customer orders, or use any form of data collection from EU-based people, it's worth checking your position.

RepGuardia is developing an Article 27 GDPR representation service. If this is something you need, get in touch and we can discuss what's involved. And don't forget to take our quick survey whilst we develop these services - as we want to know what you need. 

Which of these applies to you?

Not all six will be relevant to every business. Here's a quick reference:

A note on where to start

If you're new to selling in the EU, GPSR and IOSS are the two most immediate obligations for most small product businesses.

The €3 levy is now in effect, so if you're shipping now, that's something to address in your checkout and pricing immediately. Usually your payment software will have this covered - check out our blog on this for more. 

EPR and EUDR have longer runways but require preparation time, particularly EUDR if your products involve any of the listed commodities.

We're currently running a short survey on how small businesses are navigating the EU compliance landscape. Take the survey here and we'll share the findings when we publish the results.

If you have questions about GPSR or EU Authorised Representation, RepGuardia is here to help.