UK VAT free allowance on small value packages
The UK has increased the VAT-free threshold for small packages being imported into the country from outside of the EU. The maximum value of goods is now £39 – previously £34. The new threshold was introduced on 1 January 2017.
As with all EU member states, the UK permits low-value consignment stock relief from duties and VAT for small packages. The level around Europe is approximately €20.
The EU plans to remove the relief as part of its VAT Action Plan. The system is vulnerable to manipulation, and gives importers an unfair tax subsidy over local, EU-based providers.
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