How to Reclaim VAT on Imports

What is import VAT?

Import Value-Added Tax (VAT) is a consumption tax that is placed on goods entering countries (like the 28 EU member states). VAT is designed to distribute the tax burden across the supply chain, but ultimately must be borne by the end-user/consumer. Therefore, any VAT-registered business conducting an import of IT hardware to support their operations or provide a service to consumers, will be able to reclaim the import VAT.

How VAT Works:

What is Import VAT

VAT Reclamation

If your overseas office is VAT registered and has a VAT ID or EORI number, FGX will strongly encourage your company to be the Importer of Record (IOR). This will make VAT reclamation a simple process for your internal accounting team. FGX maintains all import documentation to support your internal teams. We give you / your internal team the tools so you don’t have to hire third-party VAT reclamation services.

Required Documentation*

  • Commercial Invoice
  • Shipping Waybill
  • Customs Clearance Entry
  • Duty and Tax Payment Receipt

How to Reclaim Import VAT

*May vary by country; check with your internal accounting team for more information

EU IMPORT VAT RATES

U.K.

VAT Rate: 20%

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Germany

VAT Rate: 19%

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France

VAT Rate: 20%

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Spain.

VAT Rate: 21%

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Netherlands

VAT Rate: 21%

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Ireland

VAT Rate: 23%

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Belgium

VAT Rate: 21%

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Italy

VAT Rate: 22%

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Poland

VAT Rate: 23%

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Denmark

VAT Rate: 25%

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Greece

VAT Rate: 24%

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Austria

VAT Rate: 20%

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Sweden

VAT Rate: 25%

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Portugal

VAT Rate: 23%

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Why Does FGX Prepay VAT?

Prepaying all taxes and duties, or shipping with incoterms Delivered Duty Paid (DDP), allows the shipment to immediately enter the customs clearance process when it arrives at the destination port. FGX only ships via DDP incoterms, to avoid any unnecessary delays once the shipment reaches customs.