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).
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How is the taxable base of Import VAT calculated?
The general formula is: Taxable Base of VAT = Customs Value + Customs Duties + Excise Duties + Ancillary Expenses up to the first place of destination in the EU
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.
Import VAT tax rates
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).
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:
| Concepto | Cálculo |
|---|---|
| 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 |
Additionally, you would have to pay the customs agency fees with their corresponding VAT.
Settlement of Import VAT
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
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.
Frequently Asked Questions
01.How is VAT paid at customs?
It is paid based on the valuation of the goods at the time of Import Customs Clearance and paid to the Revenue.
02.What is postponed VAT accounting?
Postponed VAT means the importer accounts for VAT and duties on all operations monthly.
03.Who is exempt from paying VAT?
Primarily international organisations, diplomats, and goods held under suspensive regimes.
04.How is the taxable base calculated?
The Customs Value must always be the CIF value at the port of destination (FOB Value + freight + insurance).
Related documentation
Customs Inspection and Green, Orange, Red, Yellow Channels
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PIF - Physical Inspection Point
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Customs Services
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Customs Regimes
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Special Regimes
Explore customs regimes that offer tax or logistical advantages depending on the type of operation.
Import Tariffs
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Special Taxes
Learn which goods are subject to special taxes and how they are managed at customs.