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UK VAT free allowance on small value packages

  • Jan 13, 2017 | Richard Asquith

UK VAT free allowance on small value packages

The UK has increased the VAT-free threshold for small packages being imported into the country from outside of the EU. The maximum value of goods is now £39 – previously £34.  The new threshold was introduced on 1 January 2017.

As with all EU member states, the UK permits low-value consignment stock relief from duties and VAT for small packages. The level around Europe is approximately €20.

The EU plans to remove the relief as part of its VAT Action Plan. The system is vulnerable to manipulation, and gives importers an unfair tax subsidy over local, EU-based providers.


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Researching UK VAT legislation is the first step to understanding your VAT compliance needs. Avalara has a range of solutions that can help your business depending on where and how you trade. 

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VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He can be contacted at: richard.asquith@avalara.com. He is part of the European leadership team which won International Tax Review's 2019 Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.