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VAT on import

The following video shows you how VAT on import works in the member states of the EU:

Maco VAT upon import

The reverse charge mechanism discussed in the film is available for companies in the Netherlands Germany, for example, does not have this system.

In the Netherlands, importers holding a “permit to apply the transfer rule” can simply report their monthly VAT via a declaration of the total import VAT that is due. On the same form, they can deduct the same amount again. These permits are granted ‘on demand’.

Only a few countries besides the Netherlands have such a transfer rule. This gives the Netherlands a competitive advantage over other European countries.

VAT number

To be able to make use of the transfer rule, a VAT-number of the importing company is required. The customs brokers must state that VAT-number on the import declaration. This makes it easy for tax authorities to verify the import transactions.

The extremely efficient system works very well. The advantages are:
* The actual monetary transactions are limited.
* The import declaration carries considerably less risk.
* There is no longer a VAT-liability.

Customs brokers can now focus on correctly defining the customs value, goods code, and origin preference.