Reverse charge VAT

VAT & taxation

Principles for classifying a product in the Harmonized System.

VAT Self-Assessment

VAT self-assessment is a tax mechanism that allows importing businesses to declare and pay VAT directly on their VAT return, rather than paying it at the time of import. This process simplifies cash flow management and improves the cash flow of businesses, as they do not have to advance VAT to customs.

How does it work?

When a business imports goods, it normally has to pay import VAT. With self-assessment, this VAT is simply declared on the company's periodic VAT return, usually monthly or quarterly. This means that the company can immediately deduct this VAT as a VAT credit, thus reducing the total amount of VAT to be paid.

Advantages of self-assessment

  • Improved cash flow: No immediate payment of import VAT.
  • Administrative simplification: Fewer customs formalities and payments to manage.
  • Tax optimization: Ability to deduct imported VAT in the same return.

Practical tips

  • Check your eligibility: Not all businesses can automatically benefit from self-assessment. Make sure you meet the required conditions in your country.
  • Keep your records up to date: Accurate documentation is essential to justify the amounts declared and deducted.
  • Consult a tax expert: Rules may vary depending on the country and types of goods imported. Professional advice can help you optimize your tax situation.

VAT self-assessment is a powerful tool for businesses that regularly import goods, allowing them to manage their tax obligations and cash flow more effectively.