UK De Minimis Reform — The End of the £135 Threshold and What It Means for Polish Sellers

Current Legal Position — the £135 De Minimis Threshold in the UK Since 2021

Before discussing reform proposals, it is important to understand the current position. Since 1 January 2021 the UK has applied a de minimis threshold for VAT of £135 consignment value. Below this threshold: the marketplace — if it facilitates the transaction — collects and accounts for UK VAT. Duty on goods below £135 is typically zero or collected under a simplified procedure. This mechanism is described in detail in the separate Easy Clearance article on the £135 limit.

How the Current UK De Minimis Threshold Works — a Reminder

UK de minimis is not a single piece of legislation — it is a combination of several rules:

• VAT de minimis: below £135 — the marketplace is the UK VAT taxpayer for the e-commerce transaction. The overseas seller does not register for UK VAT in respect of those transactions.
• Customs duty: there is no zero duty threshold. Duty is charged on every consignment that exceeds £135 or for which the duty rate is above zero. For goods from the EU — zero duty (TCA). For goods from other countries — MFN rate.
• Simplified procedure for small consignments: HMRC permits simplified customs declarations for postal consignments below certain thresholds (described on CN22/CN23 forms).

Source: GOV.UK — Customs duty on goods sent from abroad.

What Already Changed After Brexit — What Is Certain

After the UK left the EU (1 January 2021), permanent confirmed changes took effect:

1. The previous EU duty-free threshold of £22 (Low Value Consignment Relief) was abolished in the UK, as it was in the EU (where it was abolished from July 2021). Duty is now charged based on the value and HS code of each item.
2. VAT de minimis was transferred to the platform for values below £135.
3. The UK applies its own customs tariff (UK Global Tariff), which differs from the EU TARIC.

These changes are enacted law. Source: GOV.UK — VAT for overseas sellers.

The Planned Reform — What the UK Is Considering and Its Current Status

The UK conducted consultations on reforming the de minimis threshold for small parcel imports. The aim is to create a level playing field between overseas importers and domestic UK sellers who pay full taxes. This is the UK's response to challenges similar to those faced by the US (Section 321 reform), Canada and the EU. Position as at 2026-04-18: the reform is proposed, not enacted. It should be treated as a signal of policy direction, not as enacted law. The UK £135 import VAT threshold remains in force. A reform proposal exists but has not been enacted.

What Is Proposed and Where to Check — Official Sources

Official GOV.UK documents on e-commerce reforms are published by HM Treasury and HMRC. Key places to monitor:

• Spring/Autumn Budget — annual budget announcements contain policy statements on customs reforms: gov.uk/government/publications/spring-budget-2024.
• HMRC e-commerce consultations: GOV.UK publishes open consultations at: gov.uk/government/consultations. Search for: "de minimis", "low value imports", "online marketplace".
• OBR (Office for Budget Responsibility) — publishes fiscal impact assessments of potential changes: obr.uk.

As at 2026-04-18 no draft legislation changing the £135 threshold has been published. If the status has changed after the verification date — check GOV.UK before making decisions. Information reflects the position as at 2026-04-18.

Main Directions of the Policy Debate

Two main proposals appearing in the UK public debate:

1. Lowering or abolishing the £135 VAT threshold: the marketplace would be required to collect VAT even below the current threshold. In practice no change in charges for consumers, but an administrative change for platforms and sellers.
2. Introduction of an administrative fee for small consignments: similar to the EU (50 eurocent fee per EU customs declaration) — the UK may introduce a fee for handling small parcel customs declarations. This would increase the cost of overseas shipments.

Neither proposal has an implementation date as at 2026-04-18. HMRC has not published a legislative timetable. Treat as a signal of direction, not a confirmed date.

How Poland and the EU Respond to Similar Challenges — Context

The EU introduced the VAT e-commerce package (OSS/IOSS) in July 2021, which abolished Low Value Consignment Relief (LVCR) for consignments from outside the EU below €22 and introduced VAT for every consignment. Simultaneously, the Import One Stop Shop (IOSS) was launched for platforms. The UK followed a similar path but did not copy the EU model exactly.

Poland as an EU member state applies EU rules: every consignment from outside the EU is subject to VAT (no exemption below €22 since 2021). If the UK introduces similar rules for overseas consignments — Polish sellers shipping to the UK will need to apply different rules than for shipments within the EU. KAS source: podatki.gov.pl.

How to Prepare — What to Do Right Now

Regulatory uncertainty is not a reason for inaction. If you sell to the UK via Etsy, eBay or your own shop and ship small parcels — there are steps worth taking regardless of whether the reform is enacted. Good customs documentation, knowledge of HS codes and clear information for buyers are best practices that work under both current and reformed rules.

Check Whether Your Platform Handles UK VAT — and for Which Shipments

Etsy and eBay handle UK VAT for shipments below £135 — but the rules and scope may change. Regularly check your platform's current VAT documentation. If you sell through your own shop (without a marketplace) — UK VAT responsibility is more complex and depends on your UK VAT status and consignment values.

If the reform changes the rules — platforms such as Etsy and eBay are required to update their systems and notify sellers. Subscribe to platform communications and GOV.UK to be informed first. Source: GOV.UK — VAT for overseas sellers.

Ensure Good Customs Documentation Today — in Case of Tighter Controls

Regardless of any reform — HMRC has the right to conduct a detailed check of any consignment. Every parcel sent from Poland to the UK should contain a commercial invoice with the HS code, value and description of the goods. If changes to the de minimis threshold occur — businesses already practising good documentation will be better placed to adapt.

Cost of export customs clearance from Poland through a customs broker (full declaration in PUESC): set by the Polish customs broker. Cost of UK import customs clearance: from £45 to £150. Prices quoted are indicative ranges — exact quote after document review.

Where to Monitor Current UK E-Commerce Legislative Changes

Official sources to monitor:

• GOV.UK — What's new: gov.uk (search "de minimis" + "ecommerce")
• HMRC newsletters: free subscription via GOV.UK — "Customs Authorisations and Reliefs"
• HM Treasury Budget documents: gov.uk/government/collections/autumn-statement
• KAS — Polish tax authority: current status of customs reliefs for import and export: gov.pl/web/kas

Easy Clearance monitors legislative changes and keeps clients informed of key updates. Subscribe to our newsletter or contact us via WhatsApp so that whenever changes come into force, you are ready.

What the current rules say

The UK is planning to reform the £135 de minimis threshold for small parcel e-commerce imports, but as at 2026-04-18 no legislation has been enacted — the reform is proposed and may never enter into force in the anticipated form. Polish sellers shipping to the UK should monitor GOV.UK and their platform communications (Etsy, eBay) and not change their business model on the basis of an unconfirmed reform. Good customs documentation and knowledge of HS codes are actions worth taking now — regardless of any reforms. This article reflects the legal position as at 2026-04-18. Consult a customs broker before taking action.

FAQ — frequently asked questions

Will the UK abolish the £135 de minimis threshold for e-commerce?

As at 2026-04-18: unknown. The reform is being discussed and proposed, but no enacted legislation exists. No implementation date has been officially announced. Check the current status at gov.uk/government/consultations.

What is UK trade de minimis and how does it work now?

UK de minimis is the £135 consignment value threshold. Below this: the marketplace collects UK VAT on behalf of the seller. Above this: the buyer pays VAT and duty upon receipt. There is no zero-duty threshold for goods from outside the UK — duty is charged according to the HS code and country of origin.

How would UK de minimis reform affect Polish sellers on Etsy and eBay?

If the reform enters into force — the platform may no longer exempt all shipments from VAT. Sellers may need to register for UK VAT or customs charges may increase for buyers. But this is still a proposal — not law.

Where can I check the current status of the UK de minimis reform?

Official sources: gov.uk/government/consultations (search 'de minimis' or 'low value imports'), gov.uk — HMRC Customs Updates, HM Treasury Budget documents. Easy Clearance monitors these changes for its clients.

Should I change my business model because of the planned UK de minimis reform?

No — not on the basis of unenacted proposals. Check the current status of the reform at GOV.UK. If the reform is confirmed and has a specified implementation date — consult a customs broker and UK VAT adviser before changing your model.

Official sources

• Customs duty on goods sent from abroad — GOV.UK
• VAT for overseas sellers — HMRC — GOV.UK
• GOV.UK — Government Consultations — GOV.UK
• Podatki.gov.pl — KAS — Ministerstwo Finansow