What are the changes?
With the exponential growth in e-commerce over the last decade, the de minimis exemption of low value consignments (under £15 in the UK and under €22 in the EU) has resulted in a significant loss in revenue for Member States, given non-EU suppliers a competitive advantage, and tempted fraudulent undervaluing that has cost the EU an estimated €5 billion in lost VAT collections.
Upon its exit from the EU on 1 January, the UK already discontinued its de minimis VAT exemption for low value consignments and the EU will follow suit beginning 1 July 2021. This new legislation also requires fully electronic import declarations to be filed for all low-value consignments (with an intrinsic value under £135 in the UK and under €150 in the EU), even if there are no customs duties due.
Source Customs4trade
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