Low Value Consignment Relief
Encyclopedia
When goods are imported into a European Union
country from a non-eu territory, goods may be subject to customs duty, excise duty and value-added tax.
Value-added tax is an EU tax adopted by the member states of the European Union. However as a result of the action of an EU administrative VAT relief an exception is allowed on shipments of a low value. This administrative relief is known as Low Value Consignment Relief or LVCR and it is governed by the EU Council Directive 2009/132/EC.
It is an optional VAT relief designed to speed up the transit of low value goods through the mail which might otherwise be delayed by customs and also reduce the cost of tax collection where it might not be practicable. Member states, if they decide to allow this relief, can set it between €10 and €22 but must ensure that it is applied in a way that does not cause competitive distortion or allow VAT abuse.
European Union
The European Union is an economic and political union of 27 independent member states which are located primarily in Europe. The EU traces its origins from the European Coal and Steel Community and the European Economic Community , formed by six countries in 1958...
country from a non-eu territory, goods may be subject to customs duty, excise duty and value-added tax.
Value-added tax is an EU tax adopted by the member states of the European Union. However as a result of the action of an EU administrative VAT relief an exception is allowed on shipments of a low value. This administrative relief is known as Low Value Consignment Relief or LVCR and it is governed by the EU Council Directive 2009/132/EC.
It is an optional VAT relief designed to speed up the transit of low value goods through the mail which might otherwise be delayed by customs and also reduce the cost of tax collection where it might not be practicable. Member states, if they decide to allow this relief, can set it between €10 and €22 but must ensure that it is applied in a way that does not cause competitive distortion or allow VAT abuse.
See also
- European Union value-added tax
- VAT-free imports from the Channel Islands