Increase on ‘free allowance’ on small packages

From 1st January, 2017, the VAT-free threshold has been increased by the UK for small packages being imported in the country, from outside of the EU. The previously maximum value of goods was £34.00, this has been increased to £39.00.

The UK authorises low-value consignment stock relief from duties and VAT for small packages. This is the same with all EU Member States, with the level around the EU approximately €20.00.

The EU has a VAT Action Plan in place to remove the relief. This is due to the system being vulnerable to manipulation, and gives importers an unfair tax subsidy over local, EU-based providers.