Removing the VAT de minimis – as proposed by the European Commission in December 2016 – will cause major and disproportionate costs on the delivery industry, on national customs administrations, and on e-sellers.
In this study, we identify the effect of removing the de minimis VAT exemption. The de minimis on VAT is a relief given because of the relatively high transaction costs of tax collections on small value items. We find, that if the de minimis is removed, millions of low value items will be associated with major processing cost for collecting VAT, while only generating a small VAT revenue.
For further information, please contact Bruno Basalisco