- VAT Treatment for Imports and Exports: Businesses engaging in trade with non-EU countries must understand the VAT implications of importing goods into the EU, which typically requires the payment of import VAT based on the customs value of the goods. Conversely, exports from the EU are usually exempt from VAT, allowing for tax-free transactions.
- Responsibility for Import VAT: Import VAT is generally payable by the importer of record when goods enter the EU. Companies need to determine the customs value, which includes the cost of the goods, shipping, and insurance, to accurately calculate the VAT owed.
- Recovering Import VAT: Businesses can recover import VAT through their VAT returns, provided they are VAT-registered and the goods are used for taxable activities. Understanding the proper customs procedures and VAT regulations is essential for ensuring compliance and maximizing VAT recovery when trading with third countries.
Source vatdesk.eu
