When shipping internationally, duties and taxes can significantly impact the final cost to your customers. One concept that often comes up is the de minimis value — the minimum shipment value below which duties and taxes are not charged.
This article explains what de minimis means, why it matters for e-commerce, and how recent global changes affect your customers.
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 de minimis threshold, the customer will not have to pay duties or taxes.
If the declared value is above the threshold, the customer will be charged according to local rules.
De minimis values were originally introduced to simplify customs processing for low-value shipments. However, many governments are now removing these exemptions to increase tax revenue and ensure fair competition for local businesses.
De minimis around the world
De minimis rules differ between countries, but the global trend is moving toward the removal of de minimis exemptions.
United States
Previous rule: The US allowed a de minimis exemption of $800, meaning shipments under this value entered duty-free. In early 2025, this exemption was removed for goods from China and Hong Kong.
Current rule (from 29 August 2025): The US has now 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 removed their de minimis VAT/GST 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. Merchants should always check local regulations, as rules can change quickly.
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 can be impacted. Unexpected charges lead to negative experiences and higher return rates.
Transparency is key. Merchants should clearly communicate potential import costs or consider Delivered Duty Paid (DDP) shipping to cover duties and taxes upfront.
Summary
De minimis values once allowed low-value shipments to bypass duties and taxes, but many countries have now removed these thresholds entirely.
The US and EU apply duties or taxes on all imports.
The UK, Australia, and New Zealand also have no exemptions.
A few countries, such as Canada, still maintain limited thresholds, but these are the exception.
For merchants, this means planning for duties and taxes on every cross-border shipment, regardless of value.