Tax and Duty De Minimis

What is Tax & Duty De Minimus

A duty or tax de minimis is a goods value threshold. Imports below this threshold are exempt from duties and/or value-added tax (VAT). The thresholds differ by country as below examples illustrate:

• Items imported into the United States are duty and tax-free up to $800 goods value.
• In any EU member state, import customs duty is applicable for any goods purchased from a country outside the EU with a total price of more than €150. VAT is always charged, regardless of the value.
• In the UK, import duties apply for any goods with a total price over £135. VAT is always charged.

De minimis consideration is of significant relevance in e-commerce because of the comparably low goods value of many shipments. If several goods are consolidated into one shipment, the value of the whole shipment will be assessed for duty, and multiple shipments received on the same day may also be assessed as a single shipment. 

Glopal’s Duty & Taxes solution automatically applies any applicable de minimis rule to increase buyer conversion, optimize profit margins, and speed up import clearance.