A tax on imported goods, paid in addition to other duties due. It is called a "value-added" tax because it is applied throughout the supply chain - on everything from the point of raw materials up to manufacturing and retail.
VAT varies by country, but it is generally between 7 and 20 percent of the value of the merchandise. For imports, VAT is based on the customs value of your goods.
The United States does not currently charge a VAT tax on imports, but you will likely have to pay this tax if you import goods into the European Union. In such cases, you may be required to have a VAT ID (also called a VAT registration number). For more information on how to apply for a VAT ID (and whether or not it is necessary for you to do so), it may benefit you to contact a fiscal representative.
Learn more about the changes to the EU VAT in 2021 and the implications for your business.
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