Sending gifts internationally: Are they really tax-free?

Many people think that marking a package as a "gift" means it will automatically pass through customs without any taxes or duties. This is a common misconception, and it often leads to unexpected bills for the person receiving the gift.

1. What is the gift exemption?

A gift exemption is a rule that allows low-value items sent between individuals to enter a country duty-free. It only applies if the sender and receiver are private individuals—it does not apply if you buy something from a store and have them mark it as a gift.

Each country has its own rules for what counts as a gift and how much it can be worth.

2. What are the gift limits for the UK?

In the UK, the gift exemption limit is £39.

If a friend or family member sends you a gift worth £39 or less, you don't have to pay VAT or customs duty. If the gift is worth more than £39, you will have to pay VAT on the total value. If it's worth more than £135, you might also have to pay customs duty.

3. What are the gift limits for the US?

The US is much more generous. You can receive a gift from a friend or relative abroad worth up to $100 without paying any duty or tax.

This $100 limit is per person, per day. If a friend sends you three separate $100 gifts that arrive on the same day, customs might treat them as one $300 shipment and charge you duties on all of them.

4. Can I just mark my order as a "gift" to avoid taxes?

No. This is actually a type of customs fraud, and it rarely works.

Customs officers are not stupid. If they see a package from a known online store (like Amazon or AliExpress) marked as a gift, they will almost certainly ignore the "gift" label and charge you tax based on the actual value of the items. If they think you are lying about the value, they can seize the package or fine you.

5. What information must be on the package?

To qualify for a gift exemption, the sender should clearly mark the customs declaration form with:

• "Gift" as the type of shipment.
• A clear description of the item (e.g., "Cotton t-shirt").
• The actual value of the item.
• The sender's name and the receiver's name (both must be individuals).

If this information is missing or unclear, the courier will likely treat the package as a commercial order and charge full taxes.