VAT on postal packages - Commons Library Standard Note

Published 14 May 2012 | Standard notes SN04155

Authors: Antony Seely

Topic: Postal services, Taxation

Imports into the EU worth 10 euros or less are VAT-exempt, though Member States may apply a higher threshold up to 22 euros - worth £18 - and the UK has done this. The Channel Islands lie outside the EU for VAT purposes, and there have been concerns that some UK retailers are exploiting low value consignment relief, as it is known, by selling goods over the internet VAT-free from subsidiaries based in Jersey and Guernsey. This note gives a short introduction to this issue.

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