Importing goods involves complex regulations, especially in taxation. This article explains the special VAT regime for imported goods and highlights key rules.
The basic rule is that anyone importing goods must pay taxes to the State Budget unless the law states otherwise. This sets the obligations for importers. If a customs guarantee covers a customs debt and the importer doesn’t have special tax regime approval, they must provide a guarantee for the tax debt, ensuring compliance.
The special tax regime applies to registered taxpayers with State Revenue Service permits, or fiscal representatives handling imports for entities from other jurisdictions, given the proper authorization.
To qualify, a taxpayer must meet several conditions: commercial registration, VAT registration, conducting economic activities in the past year, financial stability, a clean tax record, timely filings, no fraud-related convictions, and registration in the Electronic Declaration System.
If a third party handles customs clearance, they can apply the special tax regime if authorized on behalf of the registered taxpayer.
The reverse charge of VAT on imports presents several advantages for businesses involved in importing goods from third countries:
- It enables businesses to bypass paying VAT upon importation, leading to significant cash flow savings. This allows businesses to invest these funds in their operations instead of allocating resources to pay import VAT.
- The special regime on imports simplifies administrative procedures for businesses. Directly declaring and paying VAT to tax authorities facilitates the monitoring of their tax situation.
- It helps companies mitigate the risk of disputes with foreign suppliers and avoid conflicts related to VAT, payment methods, and supporting documents related to the deductibility of the VAT.
