Customs Duty and Import VAT

Where international businesses are importing goods in to the EU, there will be a requirement to pay local Import VAT (unless the goods are relieved of VAT) and the goods may also be liable to Customs Duty.

Import VAT is payable when goods enter an EU country, or are released from a Customs warehouse. The liability for payment of import VAT falls upon the business acting as importer and, depending on what the business is doing with the goods, there may be consequences for VAT Registration in the country of import. In any event, the businesses importing the goods will need to consider how it can recover the VAT paid on importation. Fiscal Representation may also be required if your business is not established within the EU.

Customs Duty, unlike Import VAT, is not recoverable so increases the cost of the goods being imported. It is therefore essential that companies importing goods proactively manage their Customs Duty liability in order to maximise their profitability.

There are a variety of ways in which amount of customs duty payable can be reduced and, in certain circumstances, removed completely. Accordance can assist importers in making sure that their duty bill is at the lowest possible level.

Accordance help international businesses meet Customs Duty and Import VAT requirements by:

  • Reviewing tariff classifications to ensure appropriate duty rate is applied
  • Identifying simplified importation schemes that are available to you
  • Implementing Inward Processing Relief (IPR) and Outward Processing Relief (OPR) Schemes
  •  Introducing VAT Deferment schemes
  • Reviewing contracts to establish importation liability
  • VAT Registrations
  • Fiscal Representation
  • VAT Reporting

To find out more, contact us.

Customs Duty VAT Guide

 

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