Select a region
Making online shoppers and importers pay tax on cheaper goods from next summer will bag the Government an extra £1.1m, according to official estimates in the Government Plan.
The ‘de minimis’ threshold for collecting Goods and Services Tax (GST) on the value of imported goods decreased on 1 October 2020 from £240 to £135 for personal imports. At the time, greater focus was also put on compliance.
During 2021, the total GST collected on imported goods was £6.8m, up from £4.9m the previous year.
The tax threshold was due to fall further from £135 to £60 on 1 January, but, as part of the ‘mini budget’, this was deferred until July 2023.
Pictured: A table showing the number of personal consignments with a value of between £135 and £240 and business consignments with a value under £240 for the years 2019 to 2021, together with the associated GST liability on those consignments. (Treasury)
The newly published Government Plan explained that the “postponement was in response to a request from a group of businesses impacted by the new rules to allow them time for necessary systems changes.”
The document also states that, according to forecasts, “the increased receipts from the lowering of the de minimis level from £135 to £60 from 1 July” are estimated at “£1.1m from 2023 onwards.”
Amazon "onside" with collecting GST for Treasury
Three new Government roles to deal with extra GST work
Treasury considers collecting GST on all online shopping
GST to be payable on cheaper online goods
GST to be payable on cheaper online goods
Comments
Comments on this story express the views of the commentator only, not Bailiwick Publishing. We are unable to guarantee the accuracy of any of those comments.