HMRC seeks to dispel the hype surrounding a new EC regulation on customs duty
HMRC have issued a clarification to a prospective European Council rule change on customs duty on small items being imported from outside the EU.
The change comes about following an amending European Council regulation, which raises the threshold at which imported goods attract customs duties from the currentde minimis of €22 (£18) to €150 (£105). This has effect from 1 December 2008.
It appears that this change has been widely misunderstood as applying to VAT and excise duties – essentially, all the tax that could possibly fall due on an item coming into the EU. In fact the change applies specifically to customs duties (which have in any case been greatly reduced in recent times relative to other import taxes).