What is Import VAT?

Import VAT refers to the Value Added Tax (VAT) payable on imported goods when they enter the European Union (EU).

The transfer of VAT upon import is a crucial aspect of international trade, as it ensures that imported goods are subject to the same tax treatment as domestic goods. The importer is responsible for paying the Import VAT, typically charged as a percentage of the goods’ value. Import VAT is calculated based on the value of the goods, the country of origin, and the customs duties payable. The transfer of VAT is facilitated through a VAT number, which is a unique identifier assigned to companies registered for VAT within the EU.