What is de minimis threshold and did EU eliminate it in 2021?

Short answer The de minimis threshold refers to the minimum value of goods that can be imported into a country without incurring customs duties or VAT. As of July 1, 2021, the EU eliminated the de minimis threshold for goods imported from outside the EU, meaning that all goods are now subject to VAT regardless of their value. What to check Check the value of your imported goods to determine VAT applicability. Verify if your purchase is subject to any additional customs duties based on its value and category. Confirm if the seller is registered for the Import One-Stop Shop (IOSS) to facilitate VAT collection. Review the carrier's policies regarding handling fees for customs clearance. Understand the specific customs regulations of your EU country, as they may vary. What to do next Calculate the total value of your order, including shipping costs, to assess VAT charges. If applicable, ensure that the seller provides you with an invoice that includes VAT. Contact the seller for clarification on VAT and customs duties if you have questions regarding your order. Monitor your shipment through the carrier’s tracking system for updates on customs clearance. Be prepared to pay any VAT or customs duties upon delivery or prior to release from customs. Common pitfalls Assuming that low-value goods are exempt from VAT due to the previous de minimis threshold. Not accounting for additional handling fees charged by carriers for customs processing. Failing to provide accurate information about the contents and value of the shipment, which can lead to delays. Overlooking the need for an IOSS registration if you are a seller shipping to EU customers. Ignoring local customs regulations that may impose additional requirements or fees. Pro tip Always keep documentation of your purchases and any correspondence with sellers or carriers, as this can help resolve any issues with customs or VAT payments efficiently.