This article explains what de minimis thresholds are, how they vary by country, and what the global trend toward removing them means for cross-border merchants.
What is de minimis?
The term de minimis refers to the threshold below which customs authorities do not apply duties or import taxes (such as VAT or GST).
If the declared value of a shipment is below the threshold, the customer will not pay duties or taxes.
If the declared value is above the threshold, the customer is charged according to local rules.
De minimis thresholds were originally introduced to simplify customs processing for low-value shipments. Many governments have now removed these exemptions to increase tax revenue and level the playing field for local businesses.
De minimis around the world
The global trend is moving toward the removal of de minimis exemptions.
United States
Previous rule: A de minimis exemption of $800 applied, meaning shipments under this value entered duty-free. In early 2025, this exemption was removed for goods from China and Hong Kong.
Current rule (since August 2025): The US has eliminated the de minimis exemption for all countries. Every shipment, regardless of origin or value, is subject to duties and taxes.
European Union
Previous rule: Imports under €22 were exempt from VAT.
Current rule (since 1 July 2021): The EU no longer applies any VAT de minimis threshold. VAT is due on all imports, regardless of value. Customs duties may still be waived for shipments under €150, but VAT is always applied.
United Kingdom
VAT: No exemption applies — VAT is charged on all imports.
Customs duties: Typically apply to shipments above £135, depending on product type and origin.
Australia and New Zealand
Both countries have removed their VAT/GST de minimis exemptions. All imports are subject to tax, regardless of value.
Canada
General rule: C$20 de minimis threshold.
CUSMA/USMCA trade agreement: Higher thresholds apply for goods imported from the US or Mexico:
Duties: exempt up to C$150
Taxes: exempt up to C$40
Other countries
Switzerland, Norway, and others have also reduced or removed exemptions in recent years. Rules can change quickly — always check local regulations before shipping.
Why does this matter for merchants?
Low-value shipments are no longer tax-free. Even inexpensive goods may trigger duties and taxes at delivery.
Customer experience is at risk. Unexpected charges lead to negative experiences and higher return rates.
Transparency matters. Clearly communicate potential import costs, or consider Delivered Duty Paid (DDP) shipping to cover duties and taxes upfront.