|Do you import goods into an EU member state from a non-EU country?
If so, you might have to pay customs duty, import VAT and excise duty. Goods that are imported into the European Union from outside the EU are subject to customs duty and import VAT. Excise duty is payable in addition to customs duty and import VAT on imports of alcoholic beverages, tobacco products and energy products.
What is customs duty?
Customs duty is payable on the import of goods from outside the EU into an EU member state and can range from 0% to 25%. The applicable rate applies to the valuation of the goods declared to customs authorities.
This valuation, commonly referred to as the customs value, includes all costs up to the point at which the goods enter the EU. Customs duty is generally not recoverable and represents a hard cost.
What is import VAT?
Import VAT is also payable on the same importation of goods from outside the EU into an EU member state. The rate of VAT due at import will be the same as if the goods were supplied within the EU country of import. Import VAT is payable in addition to any customs duty that is due and is calculated on the customs value of the goods plus customs duty.
Import VAT is normally recoverable if you are registered for VAT in the country where the goods are declared to customs authorities. This happens through your VAT return in accordance with the normal VAT recovery rules in that country.
Under EU rules, goods that are imported from outside the EU into an EU member state may be exempted from import VAT if the value of the goods is low. To qualify, goods must range from €10 to €22, depending on the member state into which the goods are imported.
In the UK this is known as low value consignment relief, or LVCR. If you think you might qualify for LVCR, we recommend consulting with either the applicable tax authority or an independent tax adviser to confirm.
What is excise duty?
If you have sales of alcoholic beverages, tobacco products or energy products, you must pay excise duty on these sales (in addition to any customs duty or import VAT due). If you sell these type of goods, we recommend seeking advice from either the applicable tax authority or an independent tax adviser