Glossary
What is a de minimis threshold?
A de minimis threshold is the value below which imported goods enter a country without customs duty, and sometimes without a full declaration. Each customs territory sets its own limit, and the rules have become central to cross-border e-commerce. |
How does de minimis work?
The threshold is measured on the intrinsic value of the goods the price excluding freight and insurance. Below it, duty is waived. Above it, a full declaration and duty apply. Import VAT is treated separately and usually has a far lower threshold, so a parcel can be duty-free and still VAT-liable.
What changed in the UK and EU
- UK: Low Value Consignment Relief was removed on 1 January 2021. Import VAT is now due on low-value consumer sales, collected by the seller at checkout.
- EU: the €22 VAT exemption was abolished on 1 July 2021 and the Import One Stop Shop introduced, letting sellers collect VAT at the point of sale.
Why it matters for e-commerce
De minimis decides whether a parcel clears on a reduced dataset or needs a full declaration, and whether the seller or the recipient pays. Marketplaces price around these limits, so a threshold change can reshape an entire fulfilment model overnight.
iCustoms applies the right threshold and VAT treatment automatically across UK, EU and US parcel flows.
