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UK to End £135 Customs-Free Parcel Threshold, Aligning with US and EU Import Reforms

  • The UK will end the customs-free £135 threshold on small parcel imports to consumers, as announced in the November 2025 Budget.
  • This change is expected to raise £600 million annually and create fairer competition for UK retailers.
  • A consultation will be held on the new system, covering data collection, tariff application, possible administrative fees, and VAT changes.
  • The US and EU are also ending similar tariff-free thresholds, with the EU introducing parcel administration fees from 2026.

Source: vatcalc.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.



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