What is a low-value goods tax and where does it apply?

A low-value goods tax is VAT/GST collected at point of sale for shipments below the de minimis threshold. The EU charges VAT on all orders ≤€150 (collected via IOSS). The UK charges VAT on orders ≤£135. Australia charges GST on orders ≤AUD $1,000. DDP is recommended for these markets so duties above the threshold are also captured at checkout.