keep The Value Added Tax (Small Non-Commercial Consignments) Relief (Amendment) Order 2016
Amends the VAT (Small Non-Commercial Consignments) Relief Order 1986 by raising the value threshold for VAT relief on small non-commercial import consignments from £34 to £39, effective 1 January 2017. This de minimis threshold allows individuals to import low-value goods (gifts, personal items) without paying VAT.
Without this relief, all small non-commercial imports would require full VAT assessment and customs processing, imposing disproportionate compliance costs on individuals and administrative burdens on customs authorities. The alternative — applying full VAT machinery to trivial import values — would cost more to enforce than the revenue collected. While the threshold is arbitrary, deletion would create worse outcomes: either complete non-enforcement (undermining tax neutrality) or costly micro-administration of pennies in VAT.