VALUE ADDED TAX (VAT)

It is an indirect tax on the consumption of goods and services supplied by companies and professionals.

The importer must pay the VAT on the imported goods to the customs authority before customs clearance. The tax percentage is based on the category of goods concerned and the production stage.

VAT exemptions

In order to avoid double taxation or non taxation of an economic transaction that starts in one Member State and ends in another, intra-Community supplies are exempt from VAT in the country of the seller when:

  • Goods are acquired in the other Member State by a taxable person or a non-taxable legal entity.
  • Such goods are dispatched or transported from one Member State to another.
  • Both taxable persons are identified for VAT purposes. The customer must have a VAT identification number and must give it to the supplier to apply the VAT exemption (zero rate).