Cross-border Business Knowledge

What is import VAT?

November 18, 2020

Value added tax, the full name of VAT, is a kind of tax levied on the value-added amount generated in the circulation of goods or services as the basis for tax calculation. In addition to customs duties, import value-added tax (VAT) is also required for goods imported from countries / regions outside the EU to EU Member States. The tax rate of the import value-added tax is the same as that of the goods supplied in the EU importing countries, and is calculated according to the customs value and tariff of the goods.

If you register VAT in the country / territory of the customs authority where the goods are declared, the import VAT is usually refundable. VAT refund is made according to the standard VAT rebate rules of the country / region.

According to EU regulations, if the value of goods is low, sellers who import goods from countries / regions outside the EU to EU Member States and do not use FBA warehouse can be exempted from import VAT. To meet this requirement, the value of the goods must be between 10 and 22 euros, depending on which EU member the goods are imported into.

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