One-line definition: The de minimis threshold is the maximum value below which imported goods are exempt from import duties and in some countries, import VAT when crossing a customs border.
What it means
De minimis is a Latin phrase meaning "about minimal things." In customs and trade law, the de minimis threshold is the declared value ceiling below which a customs authority will not collect import duties on incoming goods. The logic is practical: processing a customs declaration and collecting duty on a €5 item costs the customs authority more in administrative effort than the duty itself is worth. Below the threshold, the duty is waived and the parcel clears customs without charge.
The threshold varies by country and applies differently to duties and VAT — in some markets the same threshold covers both, in others they are treated separately. And since 2021, the EU removed its VAT de minimis threshold entirely, meaning import VAT now applies to goods from outside the EU regardless of value.
For e-commerce merchants, the de minimis threshold determines whether your customers face additional charges when their parcel arrives — which directly affects how you price international shipments, what you say at checkout, and which shipping strategies make commercial sense in different markets.
Why it matters for e-commerce merchants
The de minimis threshold is one of the most commercially significant numbers in cross-border e-commerce because it determines the landed cost your customer faces — and therefore whether the price they saw at checkout matches the total they end up paying.
A customer ordering a €40 item from a Finnish store to a Australian address will almost certainly face no additional charges at delivery — the $1000 Australian de minimis threshold means the vast majority of e-commerce orders clear Australias customs duty-free. The same customer ordering a €200 item to a Norwegian address will face Norwegian import VAT and potentially import duty — because the NOK 350 (approximately €30) Norwegian threshold is exceeded.
These differences are not academic. They affect:
Customer experience. A customer who receives an unexpected customs bill after completing their purchase is not a happy customer — even if the charge is entirely legal and disclosed in the small print. High-de minimis markets are more forgiving for merchants who do not handle duty and VAT at checkout. Low-de minimis markets (Norway, Switzerland, the EU for imports) require more careful handling.
Pricing strategy. Some merchants set prices just below de minimis thresholds in key markets — keeping product pricing under $1000 for Australian orders, for example, to ensure duty-free clearance. This works at the lower end of the market but is not a scalable strategy for higher-value products.
Shipping method choice. Some postal services and economy courier tiers handle sub-threshold shipments more efficiently because they clear customs in bulk without individual inspection. Above-threshold shipments require full individual customs processing, which can extend transit times and add brokerage fees.
De minimis thresholds by key market
Thresholds are set by each country independently and change periodically. The table below reflects the position as of early 2025.
| Destination | Duty de minimis | VAT de minimis | Standard import VAT rate |
|---|---|---|---|
| USA | $0 | N/A (sales tax varies by state) | 0–13% (state sales tax) |
| EU (imports from outside EU) | €150 | None — VAT from €0.01 | 17–27% (varies by country) |
| United Kingdom | £135 | £135 | 20% |
| Norway | NOK 350 (~€30) | NOK 350 (~€30) | 25% |
| Switzerland | CHF 65 (~€67) | CHF 65 (~€67) | 8.1% |
| Australia | AUD 1,000 (~€600) | AUD 75 (~€45) | 10% (GST) |
| Canada | CAD 20 (~€14) | CAD 20 (~€14) | 5% (GST) + provincial |
| Japan | JPY 10,000 (~€60) | JPY 10,000 (~€60) | 10% |
Thresholds are subject to change. Always verify current thresholds for each destination market before quoting customers or setting checkout pricing.
The EU's zero VAT threshold — a 2021 change still catching merchants out
Before 1 July 2021, the EU had a VAT-free threshold for imports of €22 — goods below this value entered the EU without import VAT being charged. This threshold was removed as part of the same VAT reform package that introduced IOSS. From July 2021 onwards, every import from outside the EU — regardless of value, including a €2 item — is subject to EU import VAT at the destination country's rate.
For merchants who established their cross-border pricing before 2021, this is the change most likely to still be causing unintended customer charges. Low-value goods that previously cleared EU customs without VAT now attract it, and if it is not collected at checkout, it lands on the customer at delivery.
IOSS exists specifically to solve this problem for sub-€150 orders — by collecting EU VAT at checkout and pre-declaring it to customs, the parcel clears without additional charges at delivery. Above €150, EU import VAT is collected at import from the customer or their representative.
How de minimis interacts with duty and VAT separately
In most markets, duty and VAT have the same de minimis threshold — they both apply (or both do not apply) at the same value point. But several important markets treat them separately.
The EU has a €150 duty de minimis and zero VAT de minimis. Below €150, no duty applies. But VAT applies from the first euro. A €50 shipment to Germany attracts German import VAT (19%) but no import duty. A €200 shipment attracts both.
Australia has an AUD 1,000 duty-free threshold but a much lower AUD 75 GST threshold. A AUD 200 item enters Australia duty-free but is subject to 10% GST. Above AUD 1,000, both duty and GST apply.
The UK aligns its duty and VAT thresholds at £135. Below £135, no duty and no import VAT are collected at the border — but the merchant is expected to collect UK VAT at point of sale and remit it to HMRC. Above £135, both duty and VAT are collected at import.
Understanding these distinctions prevents the common mistake of assuming "below the threshold" means "no charges at all."
Common misconceptions and mistakes
"Below the de minimis threshold means no charges of any kind." Not necessarily. The de minimis threshold applies specifically to import duties, and in many markets also to import VAT. But there may be carrier handling fees, customs brokerage fees, or postal processing charges applied to international shipments regardless of value. These are carrier charges, not government levies, but they can still surprise customers who expected a charge-free delivery.
"I can split one large order into multiple small shipments to stay below the threshold." This is customs fraud — deliberately splitting a single transaction into multiple shipments to bring each below the de minimis threshold and avoid applicable duties is called "stringing" and is illegal in most jurisdictions. Customs authorities actively look for this pattern and it exposes both the merchant and the customer to penalties.
"The threshold is the same as the duty-free allowance for travelers." Travelers' duty-free allowances are a separate concept. They apply to goods carried personally across a border by a traveller, not to commercial shipments. The de minimis threshold for postal and courier imports is different and typically lower than traveller allowances.
"De minimis thresholds are stable." They are not. The EU's elimination of its €22 VAT threshold in 2021 is the most significant recent change, but thresholds in Canada, Australia, and other markets have also shifted in recent years. US de minimis rules have been removed completely in September 2025 previously being $800. Building your international pricing model around a threshold without monitoring for changes is a compliance risk.
How this connects to your Shopify store
The de minimis threshold affects two practical aspects of your Shopify store: what you communicate to customers about potential additional charges, and how you configure duty and VAT collection at checkout.
For markets where your typical order value exceeds the threshold — Norway, Switzerland, and the EU for non-EU merchants — customers will face import charges unless you handle them at checkout. The two main approaches are:
DAP (Delivered at Place): You ship without collecting duty or VAT. The customer faces the charge at delivery. You need to communicate clearly at checkout that local taxes and duties may apply. This is the simpler approach operationally but creates risk of customer disputes for above-threshold shipments.
DDP (Delivered Duty Paid): You collect the estimated duty and VAT at checkout and remit it on the customer's behalf. The customer faces no surprise charges at delivery. This requires accurate duty and VAT calculation at checkout and a carrier or customs broker service that supports DDP.
For EU imports from outside the EU, IOSS handles the VAT side for sub-€150 orders — Packrooster supports assignment of your IOSS number on EU-bound shipments so that pre-declared VAT is recognized at customs clearance and no charge is collected from the customer at the door.
For Norwegian shipments, Packrooster supports VOEC assignment, which operates similarly to IOSS for the Norwegian market — pre-collecting Norwegian VAT at checkout for orders under NOK 3,000 and transmitting it through the carrier's declaration.
The customs declaration values on CN22 and CN23 forms — generated automatically by Packrooster for international shipments — are what customs authorities use to assess whether a shipment falls above or below the applicable threshold. Accurate declared values are the foundation of correct threshold application.
Learn more about Packrooster →
Frequently asked questions
Does the de minimis threshold apply to the goods value or the total shipment value including shipping? This varies by country. In the EU, import VAT is assessed on the customs value of the goods plus shipping and insurance costs (the CIF value — Cost, Insurance, Freight). In the UK £135 threshold applies to the intrinsic value of the goods excluding shipping. Check the specific basis for each destination market you ship to — using the wrong value basis can result in incorrect threshold assessment.
What happens to a shipment that is just above the de minimis threshold? It is assessed for duty and VAT on the full declared value, not just the amount above the threshold. The de minimis is a binary threshold — below it, nothing applies; above it, the full charge applies to the total value. A shipment valued at €151 into the EU attracts duty on the full €151, not just the €1 above the €150 threshold.
Can I rely on the de minimis threshold as a long-term pricing strategy? Not reliably. De minimis thresholds are set by governments and can change. The EU's elimination of its €22 VAT threshold in 2021 was a significant change that caught many merchants off guard. The US $800 threshold has been removed completely as of August 2025. Building a pricing strategy that depends on a specific threshold remaining in place is a compliance risk — monitor changes in your key markets.
How does de minimis apply to B2B shipments? De minimis thresholds typically apply to all commercial imports regardless of whether the recipient is a consumer or a business. B2B imports above the threshold are assessed for duty in the same way as B2C imports. The distinction between B2C and B2B is more relevant for VAT treatment — B2B imports in the EU, for example, are typically handled through the recipient's VAT registration (reverse charge) rather than through IOSS.
What is the de minimis threshold for Finland shipping to Russia or Belarus? As of 2025, commercial postal and courier services to Russia and Belarus remain severely restricted due to sanctions. De minimis threshold considerations for these destinations are not practically applicable for most e-commerce merchants — the routes are effectively closed regardless of shipment value.
