Overview
- The UK government, which announced on Tuesday that it will end the de minimis customs duty relief in October 2028, also launched a review of how VAT is collected from online marketplaces.
- Major retailers and trade bodies said the six-month acceleration is insufficient and urged ministers to adopt faster or interim measures such as a small parcel levy to stop unfair competition from e‑tailers.
- The European Union will abolish its de minimis exemption from around July 1 and introduce a temporary 3‑euro fee until July 1, 2028, a change that industry says could redirect low‑value shipments toward the UK.
- Retailers estimate closing the loophole could raise about £1.7bn a year for the Treasury and say reform would improve product traceability and reduce unsafe or non‑compliant goods entering UK markets.
- De minimis originally cut customs paperwork for very small shipments but digital growth in direct‑to‑consumer parcels has made the exemption economically significant and led ministers to weigh faster reform options.