J. van de Put Fresh Cargo Handling B.V.

VAT & VAT transfer

Here we look at 2 subjects:

• Calculating import VAT
• VAT transfer

Calculating import VAT

When importing goods you have to pay VAT over the total value of the shipment (incl. import duties). You calculate the import VAT in the following way:

• Your shipment is being sent under FCA/FOB conditions:

(Invoice value + all freight costs + import duties) X VAT percentage = VAT to be levied

• Your shipment is being sent under CPT/CIF conditions:

(Invoice value + import duties) X VAT percentage = VAT to be levied

VAT transfer

When importing goods you have to pay VAT. You cannot reclaim this VAT until at the end of the quarter or month when you fill in your VAT declaration. All VAT is therefore pre-financed. This can be a costly affair, and obviously you'd be better off using this money for other, more fruitful purposes. It's certainly the case when you are importing large shipments or are going to be importing more and more, you will notice that you're pre-financing a lot of VAT by doing so.

J. van de Put can transfer VAT when declaring your shipment to Customs. This means that the VAT calculated on import can be transferred to you. To this end you will need to apply for a permit from the Belastingdienst (a so-called Article 23 permit). Then, when you import a shipment, the VAT is not charged but transferred to your VAT number. 

You then report the VAT transferred to you when importing the goods on your tax return, together with your VAT to be payed. As far as the import VAT is concerned, these entries then cancel each other out, resulting in you not having pre-financed any VAT.