De minimis value:
A minimum value defined by a country required to apply customs duty and tax rates on imported goods.
Did you know? Not every shipment is taxed on import. Many countries have a de minimis threshold, under which shipments are cleared without incurring customs duties or taxes. However, the threshold varies from country to country and each threshold is based on local currency. In addition, some countries don’t have a de minimis rule, so everything gets taxed; other countries don’t have customs duties, so nothing gets taxed. Furthermore, de minimis thresholds for duty and import tax can vary in some countries, therefore shipments can be subject to one tariff but not another.
To help you figure out what duties and taxes apply where, take a look at the de minimis table below. Depending on the amount of international business you handle, it may be time to automate your customs duty and import tax calculations. Avalara AvaTax Cross-Border automatically applies the correct VAT, GST, and customs duties to international transactions, factoring in variables like exchange rate and de minimis threshold.
The table below provides examples of countries and their de minimis thresholds for duty and tax.
|Country||Duty De Minimis Threshold||Tax De Minimis Threshold (VAT/GST)|
|Australia||AUD 1000||AUD 0|
|Canada||CAD 20||CAD 20|
|France||EUR 150||EUR 22|
|Germany||EUR 150||EUR 22|
|Ireland||EUR 150||EUR 22|
|Japan||JPY 10,000||JPY 10,000|
|Netherlands||EUR 150||EUR 22|
|South Korea||KRW 150,000||KRW 150,000|
|United Kingdom||GBP 135||GBP 15|
|United States||USD 800||-|