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Import and Export Manual for low value shipments

1.3.1. Intrinsic value

The new VAT rules in electronic commerce have incorporated special regimes for the calculation of VAT on the import of goods in shipments that do not exceed 150 EUR . The concept applied is in line with the duty-free threshold for consignments without estimable value under the Regulation on Customs Exemptions (Regulation (EC) No 1186/2009, hereinafter referred to as "FRG"). In addition, from July 2021, Member States must integrate a validation mechanism in the declaration processing system (National Import Systems) to verify whether the customs declaration of release for free circulation of certain low-value shipments (the data set H7 of Annex B of AD CAU ) has been legitimately applied.

In view of all the above, customs legislation introduced a legally binding definition of this term, which safeguards its harmonized application throughout the EU and builds on the approach that has been applied regarding to the threshold of exemption from customs duties. This definition refers to the application of the threshold of EUR 150 for both customs and VAT purposes, regardless of the VAT regime used.

Article 1, point 48, AD UCC states that “ intrinsic value ” means the following:

  1. for commercial goods: the price of the goods themselves when sold for export to the customs territory of the Union, excluding the cost of transport and insurance, unless they have been included in the price and have not been indicated separately on the invoice, and any other taxes and charge that the customs authorities can determine from any relevant document;
  2. For non-commercial goods: the price that would have been paid for the goods themselves if they had been sold for export to the customs territory of the Union.

In the section dedicated to ED Examples of calculating intrinsic value are given in chapter 2, section 2.2.1.

The term "any other taxes and levies" means any tax or levy levied on the value of the goods or in addition to a tax or levy imposed on such goods.

As for goods without a commercial character, the definition must be understood along the same lines as that of those with a commercial character, that is, the value of the goods themselves, excluding any other costs, taxes or charges mentioned in article 1, point 48, letter a), of the AD CAU.