New VAT threshold for non-commercial parcels from 1 January 2013

| December 21, 2012 | 0 Comments

Her Majesty’s Revenue and Customs (HMRC) has announced that, from 1 January 2013, the VAT threshold for non-commercial parcels will be reduced from £40 to £36. The decision to amend the VAT threshold follows HMRC’s annual revalorisation of the euro against the pound sterling.

Following the removal of Low Value Consignment Relief (LVCR) in April this year, all commercial items sold and sent through the post into the UK are now liable for VAT.

Non-commercial items (gifts*) up to the value of £40 have previously been exempt from VAT. However, this limit has now been reduced and from 1 January 2013, VAT must be paid on all gifts over £36 or the recipient will be charged the appropriate amount in addition to a handling fee.

Further information on VAT and posting from Jersey into the UK is available by visiting www.jerseypost.com/VAT.

*A gift is defined by HM Revenue and Customs as an item sent between two private people, is of occasional nature such as a birthday or Christmas gift and where no monetary consideration has been made.

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