Knowledge (XXG)

Low-value consignment relief

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59:. While this was in place the rate of UK domestic VAT went unchanged and this allowed internet order fulfillment centres to appear in the Channel Islands for packages under £18 (€22). In 2011 the UK Treasury announced that from 1 April 2012, LVCR would no longer apply to goods imported to the UK from the Channel Islands. It was announced on 4 October 2012 that 47:
LVCR is an optional form of VAT relief designed to speed up the transit of low value goods through the mail which might otherwise be delayed by customs and also to reduce the cost of tax collection where it might not be practicable. Member states, if they decide to allow this relief, can set it at a
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Directive 2009/132/EC of 19 October 2009 of the European Parliament and of the Council determining the scope of Article 143(b) and (c) of Directive 2006/112/EC as regards exemption from value added tax on the final importation of certain
373: 35:
Value-added tax is an EU tax adopted by the member states of the European Union. However, an optional exception is allowed on low value shipments to member states in the form of an EU administrative VAT relief, known as
52:, the UK withdrew LVCR meaning that all imports to the UK have attracted VAT regardless of their value since 1 January 2021. The European Union is expected to implement similar changes from 1 July 2021. 63:
would close its operations with the loss of about 180 jobs (110 in the UK, 50 in Jersey and 20 in Guernsey). The closure was blamed on changes to LVCR affecting the Channel Islands. In August 2013,
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maximum limit of between €10 and €22, but must ensure that it is applied in a way that does not cause competitive distortion or allow VAT abuse. After the
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Ireland: Relief from Customs Duty and VAT on gift consignments and consignments of negligible value imported from outside the European Union (EU)
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Condorgroup: "Following loss of LVCR, Condor Group to close logistics business"
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United Kingdom: VAT on Postal Packages, House of Commons Library, 2013,
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LVCR allowed by the UK on shipments originating from the Channel Islands
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bbc.co.uk: "Shipping company Huelin-Renouf stops trading" 20 Aug 2013
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country from a non-EU territory, those goods may be subject to
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It is governed by the EU Council Directive 2009/132/EC. 861: 820: 792: 762: 716: 695: 686: 540: 482: 456: 428: 397: 334: 288: 204:"VAT free loophole to be closed by UK Treasury" 55:An example of the use of LVCR was found in the 266: 8: 369:Economic and Financial Affairs Commissioner 71:container service for 80 years between the 692: 273: 259: 251: 98:VAT-free imports from the Channel Islands 374:Taxation and Customs Union Commissioner 109: 389:European Economic and Social Committee 7: 838:Third-country economic relationships 874:European Trade Union Confederation 14: 311:2008 European Union stimulus plan 16:When goods are imported into a 853:Transatlantic Economic Council 93:European Union value-added tax 1: 282:Economy of the European Union 326:European Employment Strategy 38:Low Value Consignment Relief 934: 887: 749:Saint Pierre and Miquelon 879:Euro Banking Association 828:Largest trading partners 226:21 February 2014 at the 50:Brexit transition period 67:, which had operated a 843:European Economic Area 296:European Single Market 232:webcite backup of same 897:European Union Portal 833:Free trade agreements 469:London Stock Exchange 420:Regional development 81:Channel Island Lines 73:Port of Southampton 812:Knowledge triangle 763:of the Netherlands 405:Agricultural (CAP) 210:. 8 November 2011. 918:Value added taxes 905: 904: 788: 787: 754:Wallis and Futuna 925: 892:Economics Portal 739:Saint Barthélemy 724:French Polynesia 693: 517:Hungarian forint 275: 268: 261: 252: 245: 240: 234: 218: 212: 211: 200: 194: 193: 191: 189: 175: 169: 168: 166: 164: 150: 144: 138: 132: 126: 120: 114: 75:and the Port of 69:lift-on/lift-off 61:Condor Logistics 933: 932: 928: 927: 926: 924: 923: 922: 908: 907: 906: 901: 883: 857: 816: 784: 758: 712: 682: 541:State economies 536: 478: 452: 424: 393: 364:Investment Fund 359:Investment Bank 336: 330: 301:Lisbon Strategy 284: 279: 249: 248: 241: 237: 228:Wayback Machine 219: 215: 202: 201: 197: 187: 185: 177: 176: 172: 162: 160: 152: 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Retrieved 182: 173: 161:. Retrieved 157: 148: 136: 124: 112: 54: 46: 41: 37: 34: 22:customs duty 15: 643:Netherlands 438:Competition 306:Europe 2020 26:excise duty 696:of Denmark 633:Luxembourg 484:Currencies 344:Euro Group 321:Aho report 104:References 802:EU patent 717:of France 708:Greenland 628:Lithuania 415:Fisheries 188:3 January 163:3 January 912:Category 668:Slovenia 663:Slovakia 653:Portugal 558:Bulgaria 398:Policies 224:Archived 208:BBC News 87:See also 794:R&D 775:Curaçao 729:Mayotte 658:Romania 613:Ireland 608:Hungary 598:Germany 588:Finland 583:Estonia 578:Denmark 563:Croatia 553:Belgium 548:Austria 457:Finance 142:PN 1179 130:SN 4155 678:Sweden 648:Poland 623:Latvia 603:Greece 593:France 568:Cyprus 448:Merger 443:Labour 410:Energy 349:Ecofin 289:Market 77:Jersey 770:Aruba 673:Spain 638:Malta 618:Italy 230:also 118:goods 807:EIIT 512:Euro 384:EFSM 379:EFSF 190:2021 165:2021 42:LVCR 28:and 430:Law 40:or 914:: 206:. 181:. 156:. 83:. 32:. 24:, 274:e 267:t 260:v 192:. 167:.

Index

European Union
customs duty
excise duty
value-added tax
Brexit transition period
LVCR allowed by the UK on shipments originating from the Channel Islands
Condor Logistics
Huelin-Renouf
lift-on/lift-off
Port of Southampton
Jersey
Channel Island Lines
European Union value-added tax
VAT-free imports from the Channel Islands
Directive 2009/132/EC of 19 October 2009 of the European Parliament and of the Council determining the scope of Article 143(b) and (c) of Directive 2006/112/EC as regards exemption from value added tax on the final importation of certain goods
SN 4155
PN 1179
"Changes to VAT treatment of overseas goods sold to customers from 1 January 2021"
"New VAT and customs e-commerce rules for the import of low value consignments as of 1 July 2021"
"VAT free loophole to be closed by UK Treasury"
Condorgroup: "Following loss of LVCR, Condor Group to close logistics business"
Archived
Wayback Machine
webcite backup of same
bbc.co.uk: "Shipping company Huelin-Renouf stops trading" 20 Aug 2013
v
t
e
Economy of the European Union
European Single Market

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