Understand what Import VAT is
Import VAT is the Value Added Tax applied to goods entering the territory of the European Union from non-EU countries. It is a tax collected at customs at the moment goods enter the customs territory.
Unlike the VAT you pay for products bought within the EU, this VAT is settled when crossing the border and is paid to the Spanish Tax Authority (or equivalent body in the country of import).
Who must pay it? The importer, whether a company, a self-employed individual, or a private person, is responsible for settling this tax. The customs agent usually manages this procedure on behalf of the importer with the customs authorities.
How is the taxable base of Import VAT calculated?
This is the most important part. The taxable base on which VAT is calculated is not just the price of the goods but a sum of several components.
The general formula is:
Let's look at each component:
Customs Value (CIF Value)
This is the value of the goods at the time of their arrival at customs. It is calculated as:
- • Product purchase price (FOB Value): The price you pay to the seller.
- • Transport expenses (freight): The cost of transporting the goods to the port or airport of entry into the EU.
- • Insurance: The cost of transport insurance.
Customs Duties
These are taxes applied to certain products to protect local industry. The percentage of customs duty varies according to the type of product and its country of origin. They are calculated on the customs value.
Excise Duties
If the imported product is alcohol or tobacco, the Excise Duties mentioned previously must be added.
Ancillary Expenses
These are other costs related to the import, such as port fees, unloading and handling costs, etc., incurred up to the first place of destination within the EU.
Please note! Customs agent fees and expenses are not included in the taxable base of Import VAT. They are invoiced separately and also include VAT.
Import VAT tax rates
Once you have the taxable base, the applicable VAT rate for the product is applied. In Portugal, the rates are the same as for national operations
23%
Standard rate, applied to most products (in Portugal, while in Spain it is 21%).
13%
Intermediate rate, for products such as prepared foods, passenger transport (in Portugal).
6%
Reduced rate, for essential products such as books, newspapers, basic foodstuffs, and medicines (in Portugal).
Practical example of calculation
Let's imagine you import a batch of computers from the United States:
Example data:
• Price of computers (FOB Value): €10,000
• Transport expenses (freight): €500
• Insurance: €50
• Applicable customs duty: 5%
• Unloading expenses: €100
• Applicable VAT rate: 23% (example for Portugal)
Step-by-step calculation:
1. Customs Value (CIF):
€10,000 (FOB) + €500 (freight) + €50 (insurance) = €10,550
2. Customs Duties:
€10,550 (CIF Value) × 5% = €527.50
3. Taxable Base for VAT:
€10,550 (CIF Value) + €527.50 (Customs Duties) + €100 (unloading expenses) = €11,177.50
4. Import VAT:
€11,177.50 (Taxable Base) × 23% = €2,570.83
Total taxes to pay at customs:
€527.50 (customs duties) + €2,570.83 (VAT) = €3,098.33
Additionally, you would have to pay the customs agency fees with their corresponding VAT.
Settlement of Import VAT
Traditionally, Import VAT was paid at customs at the same time as customs duties. However, for companies that submit monthly VAT declarations, there is a VAT deferment regime.
This allows them not to pay VAT at customs, but instead to declare and deduct it in their monthly VAT declaration (model 303), which represents a financial advantage by not having to pay the money upfront. To adhere to this regime, companies must apply to the Tax Authority.
Exemptions and thresholds
There are certain exemptions to Import VAT, for example, for low-value shipments. If the value of the goods is less than €150, the import is exempt from customs duties.
Furthermore, if the value is less than €22 (for commercial shipments) or €45 (for shipments between individuals), the import may also be exempt from VAT.
However, these exemptions have restrictions, especially in the case of alcohol and tobacco.
Related documentation
Customs Inspection and Green, Orange, Red, Yellow Channels
Learn about the different customs control channels and how they affect the clearance of your goods.
PIF - Physical Inspection Point
Key information about health and quality controls applicable to goods subject to physical inspection.
Types of Customs Premises
Discover the different premises where goods under customs control can be stored or inspected.
Customs Services
Learn about our complete customs clearance services for import and export.
Customs Regimes
Learn how different customs regimes determine the taxation and treatment of your goods.
Special Regimes
Explore customs regimes that offer tax or logistical advantages depending on the type of operation.
Import Tariffs
Check how tariffs are calculated and what factors influence their application to imported products.
Special Taxes
Learn which goods are subject to special taxes and how they are managed at customs.