The Global End of De Minimis: US, EU and UK Import Rules Compared
Within the space of three years, the world’s three biggest e-commerce destinations are dismantling their low-value import exemptions. The US already has; the EU’s €3 transitional levy took effect on 1 July; the UK follows in 2028. For cross-border sellers, “de minimis” is ending as a business model.
Three regimes, one direction
United States — already done
The US suspended its $800 de minimis exemption in August 2025. Every import, however small, now requires formal customs entry with duties and taxes as applicable, and exporters must supply accurate HTS classification data. The era of frictionless sub-$800 parcels into the US is over.
European Union — live since 1 July 2026
The EU removed duty-free treatment for consignments of €150 or less on 1 July 2026, replacing it with a transitional €3 levy per item by customs classification. Full classification-based duties return with the 2028 customs reform, when the Customs Data Hub launches, simplified tariff buckets apply, and platforms acting as deemed importers become liable for duty, import VAT and product compliance. A separate EU handling fee of around €2 is under negotiation for late 2026, with some Member States pursuing national parcel fees on top.
United Kingdom — October 2028
The UK confirmed at Autumn Budget 2025 that its £135 customs duty relief will go, and on 23 June 2026 accelerated the deadline by six months to October 2028. The consultation design points to item-level data obligations for sellers and marketplaces, optional simplified duty buckets, a possible administration fee, and a fiscal representative requirement for non-UK sellers. Import VAT rules — point-of-sale collection under £135, marketplace liability where applicable — already changed in 2021 and continue alongside.
Why every government is doing this at once
The drivers are the same everywhere: parcel volumes that have exploded (the EU alone saw billions of low-value imports last year), systematic under-declaration to squeeze under thresholds, unfair competition against domestic retailers who pay duty from the first unit, and product-safety concerns about unvetted direct-from-factory shipments. Once one major market moved, the competitive logic pulled the others along — goods deflected from a closed door tend to flood through whichever one remains open.
Strategic consequences for sellers
- Landed cost is the new battleground. Duty, levies and handling fees must be priced in at checkout. Sellers who surprise customers with doorstep charges will lose them.
- Data quality is now revenue-critical. HS/HTS classification, honest valuations and complete consignee data determine whether parcels clear or stall in all three markets.
- Local fulfilment gets more attractive. Import charges apply at the border; stock already inside the market escapes them. Expect the economics to keep tilting toward EU and UK warehousing — which brings its own VAT registration consequences that need planning.
- Compliance is converging. A seller who builds clean classification, valuation and reporting pipelines once can reuse them across the US, EU and UK regimes rather than treating each as a crisis.
Rethinking your fulfilment map for the post-de-minimis world? We advise sellers on where warehousing triggers VAT obligations — and how to structure around them.
Talk to our cross-border VAT team →Sources: US CBP announcements; Council Regulation (EU) 2026/382; HM Treasury announcements of November 2025 and June 2026. Reference information compiled by VAT Support — informational only, not tax advice.