Rethinking the De Minimis Threshold

The authors in this article examine the treatment of low-value imports in cross-border e-commerce and the challenges these flows create for consumption tax collection. They discuss the European Union’s removal of the low-value import VAT exemption and its shift toward simplified collection mechanisms for low-value consignments. Then, they contrast this with Malaysia’s incremental approach, including the introduction of sales tax on low-value goods.