Service Update

New Tax Requirements For European Union (EU) And United Kingdom (UK)

01 Jul 2021

Dear Valued Customers,

 

Effective 1 July 2021, Value Added Tax (VAT) exemption for imported goods with value not exceeding EUR22 will be abolished in all European Union (EU) countries. All goods including gifts posted to the EU countries via International Small Packet, Flexipack International, International Parcel, Express Mail Service (EMS) and AsiaXpress (AX) services will be subject to VAT and all consignments need to be declared to customs.

 

The EU countries are Austria, Belgium, Bulgaria, Croatia, Cyprus, The Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain and Sweden.

 

There is also no more relief on low value imported goods to United Kingdom (UK) with the withdrawal of £15 VAT exemption effective 1 January 2021. The VAT for UK ranges from 0% up to 20% depending on content of goods. However, no VAT for goods value up to £39 if sending gifts (with no commercial and trade elements) from private sender to UK private addressee.

 

VAT can be collected by the authority during customs clearance upon arrival at the EU countries and UK. Addressee shall expect extra charges which is an additional clearance fee to the customer for VAT collection and completing the necessary formalities upon importation of the goods.

 

For enquiries, kindly reach out to us via AskPos at www.pos.com.my.

 

Thank you.