Complete reference for Value Added Tax on imports across all member states
Value Added Tax (VAT) on imports is a consumption tax charged when goods enter the European Union from third countries. Unlike customs duties, which are collected by the EU as "own resources," import VAT is collected by individual member states as part of their national VAT systems. This distinction is important for understanding how import taxes work and who ultimately bears the cost.
Import VAT is calculated on the "customs value" of goods, which typically includes the cost of the goods, insurance, and freight (CIF) to the EU point of entry, plus any customs duties and other charges. The applicable rate depends on which EU country the goods are imported into and the type of goods being imported. Most countries apply reduced VAT rates to essential goods like food, medicines, and books.
For VAT-registered businesses, import VAT is generally recoverable as input tax on the next VAT return, making it a cash-flow consideration rather than a final cost. However, for consumers and non-VAT-registered entities, import VAT represents an actual additional expense that must be factored into purchasing decisions when buying from outside the EU.
The following table shows the standard VAT rates applicable to most imported goods in each EU member state. Reduced rates may apply to specific categories of goods such as foodstuffs, pharmaceuticals, books, children's clothing, and other essential items.
| Country | Standard Rate | Reduced Rates |
|---|---|---|
| Austria | 20% | 10%, 13% |
| Belgium | 21% | 6%, 12% |
| Bulgaria | 20% | 9% |
| Croatia | 25% | 5%, 13% |
| Cyprus | 19% | 5%, 9% |
| Czech Republic | 21% | 12%, 15% |
| Denmark | 25% | None |
| Estonia | 22% | 9% |
| Finland | 24% | 10%, 14% |
| France | 20% | 5.5%, 10% |
| Germany | 19% | 7% |
| Greece | 24% | 6%, 13% |
| Hungary | 27% | 5%, 18% |
| Ireland | 23% | 9%, 13.5% |
| Italy | 22% | 4%, 5%, 10% |
| Latvia | 21% | 5%, 12% |
| Lithuania | 21% | 5%, 9% |
| Luxembourg | 17% | 3%, 8% |
| Malta | 18% | 5%, 7% |
| Netherlands | 21% | 9% |
| Poland | 23% | 5%, 8% |
| Portugal | 23% | 6%, 13% |
| Romania | 19% | 5%, 9% |
| Slovakia | 20% | 10% |
| Slovenia | 22% | 5%, 9.5% |
| Spain | 21% | 4%, 10% |
| Sweden | 25% | 6%, 12% |
VAT rates are subject to change. Some countries have implemented temporary rate reductions for specific sectors. Always verify current rates with national tax authorities before making commercial decisions.
Import VAT is calculated on the total value of goods as determined for customs purposes, including the customs value, any customs duties, and any other charges levied at import. The formula is:
Import VAT = (Customs Value + Customs Duty + Other Import Charges) × VAT Rate
Consider importing electronics valued at €10,000 into Germany:
If the same goods were imported into Hungary instead:
This €820 difference illustrates why businesses sometimes consider which EU port of entry offers the most favorable total import cost, though this must be balanced against logistics costs and practicality.
Businesses registered for VAT in the importing country can generally reclaim import VAT as input tax on their periodic VAT returns. The import VAT paid to customs can be offset against VAT collected on sales, with any excess refunded or carried forward. This recovery right is fundamental to the VAT system's neutrality for business transactions.
To reclaim import VAT, businesses typically need the customs declaration (C88/SAD or electronic equivalent), proof of payment, and the import VAT certificate issued by customs. These documents must be retained for audit purposes, typically for at least six years depending on national requirements.
Several EU member states offer postponed VAT accounting (PVA) or similar mechanisms that allow importers to account for import VAT on their regular VAT returns rather than paying it at the point of import. This significantly improves cash flow by eliminating the timing difference between paying import VAT and recovering it.
Countries currently offering postponed VAT accounting include the Netherlands (Article 23 license), Belgium, France (AI2 procedure), Ireland, and others. Requirements and procedures vary by country, typically requiring authorization or specific customs status.
Prior to July 1, 2021, goods valued under €22 imported into the EU were exempt from import VAT. This exemption was abolished with the introduction of the Import One-Stop Shop (IOSS) system. Now all imported goods are subject to VAT regardless of value, though simplified procedures exist for low-value consignments.
While VAT applies to all goods, customs duty is not charged on consignments with a total value of €150 or less. This de minimis threshold applies only to commercial goods, not to excise goods or goods subject to specific trade measures.
Goods originally exported from the EU and returning within three years may qualify for relief from both customs duty and import VAT under returned goods relief, provided they are in the same state as when exported and meet specific documentation requirements.
Since January 1, 2021, goods from the United Kingdom (excluding Northern Ireland for goods) are treated as imports from a third country, subject to full customs formalities and import VAT. The EU-UK Trade and Cooperation Agreement provides for zero duties on qualifying goods but does not affect import VAT obligations.
Despite their close economic ties with the EU, imports from Switzerland and Norway are also subject to import VAT. These countries are not part of the EU VAT area, so goods crossing from them into the EU require customs declarations and VAT payment.
For complete landed cost calculations, also review our guides on customs duties, ecommerce import procedures, and the frequently asked questions section.
