VAT Deferment

VAT deferment upon importation is another aspect that your business needs to deal with when engaging in importing activities with EU member states. VAT deferment basically means that there is going to be a temporary postponement of your paying of VAT on imports. Even though there are the general EU mandated VAT procedures, each member state then has some leeway in how to implement them. VAT deferment is one of these areas. When importation of goods take place, the customs duties and the VAT are due on them, according to the laws in that particular country. However, with VAT deferment, the import VAT will be tackled a bit more leniently in some countries. This is because with the appropriate deferment account, import VAT that is due may be postponed a bit, and this may help importers handle payments and their dues in a more flexible manner. For someone who is not that conversant with the rules and taxation matters, VAT deferment tends to look somewhat complicated. It is a known fact that when a non-resident company imports goods into some EU countries, it does not only have to be VAT registered, but it also needs to pay the import VAT and duties on import. But with VAT deferment, there is the possibility to handle these differently. VAT deferment aims to offer a more cash-flow friendly alternative to businesses, especially those who are regular importers. The importer can basically defer the VAT and the duties to be paid later on, such as in the following month. A bank guarantee is generally required if this is not something that is done regularly, but for regular importers this can be like a scheme, and so the bank guarantee can even be avoided. These matters are best handled by a fiscal representative who will be an expert in such a field. VACUE can assist you in availing of the services of an experienced fiscal representative in the country that you deal with. Contact VACUE to request more information and to be assisted efficiently by a qualified fiscal representative.

VAT deferment relates requests

Do you represent an American or European company and have any kind of request related to VAT deferment? Fill out the form at 'Information Request'. Within 8 working hours you get response.

Is a Guarantee required by VAT Deferment

Minimum guarantee

VAT DefermentAccording to the EU VAT directive, an importer is required to provide a minimum guarantee for deferment of import VAT and duties. This is due to the fact that these will not be paid at the time of importation. Guarantees such as these need to come from a bank or an insurance company that is approved in granting such a guarantee.

Fiscal representative

The fiscal representative will see to this on your behalf, should this be required in your case. However, in some cases no guarantee is required as there is a scheme, named, Simplified Import VAT Accounting scheme, which was introduced back in 2003 with the aim of cutting the import VAT due via the deferment system. Approval for this scheme may be gained by importers when they apply for deferment. However such matters are best handled by an experienced fiscal representative since there are certain terms that need to be satisfied to be approved.

How does it work?

The process is really simple and quick.

  • Contact VACUE online by filling in the form on the website 'Information Request'. Explain what you are enquiring about, that is, if it is about VAT deferment issues.
  • Upon receiving your request we will then get in touch with our specialists, depending on what you explained in your request. There are several specialists who will be able to suit your specific needs.
  • These specialists will subsequently contact you, either by calling you or by sending an email. It is VACUE's priority to ensure that communication is as prompt as possible, and so we guarantee that you will receive a reply from the tax or customs specialists within just 8 hours.
  • Within 8 hours the specialist will update VACUE with the status of your request so that we will be informed of what is going to happen with regards to the service required, and be in a better position to manage it all for your utmost satisfaction.

The fiscal representative’s services for VAT Deferment

Qualified professional

Having a qualified professional in taxation matters is really helpful, and quite often, indispensable when you engage in cross-border and international transactions. A fiscal representative through the VACUE network can offer valuable assistance to your business while acting as a local representative in the European country or countries that you deal with. The fiscal representative will offer you constant advice with regards to the VAT and its implications on the transactions that your business is involved in. He or she will also offer assistance in case of taxation or customs issues, audits, VAT registration and compliance matters, and VAT deferment.