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.
Customs Broker Customs Clearance Fee Customs Value
What do I need to know about the changes to the European Union Value-Added Tax (VAT) in 2021?
Learn more about the changes to the EU VAT in 2021 and the implications for your business.
We use our more than 80 years of experience with brokerage to help companies just like yours navigate these tricky waters.
As your global supply chain grows, so do the complexities you face managing risk and cost. UPS Zone Solutions can help.