A country's de minimis threshold determines whether or not customs duties, value-added taxes (VAT), or goods and services taxes (GST) apply to an international shipment. Duties or import taxes aren't applied to a line item amount if it's below the destination country's de minimis threshold. Thresholds are based on local currency. Because de minimis thresholds differ between countries and tax type, shipments with the same value may be subject to fees in some countries but not in others.
View de minimis thresholds by country
Calculating de minimis in AvaTax
AvaTax converts the value of a shipment to the destination country's currency before measuring that value against the country's de minimis threshold. AvaTax checks key transaction values in order to make an accurate conversion, including currency code, Ship From address, Ship To address, and the Cost, Insurance and Freight (CIF) or Free on Board (FOB) status of the shipment according to the trade agreements that are present in the destination country.
For example, when shipping a €750 EUR product to the US, AvaTax converts EUR to USD based on the currency code and address information included with the transaction. AvaTax then compares the converted value of the shipment ($840 USD) to the destination country's de minimis threshold ($800 USD) before applying a duty rate.