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VAT Deferment on Imports for Amazon Sellers

Amazon Fulfillment Centers in Czech Republic
November 16, 2019
Amazon Fulfillment Centers in Poland
November 19, 2019

VAT Deferment on Imports for Amazon Sellers

VAT deferment is a non-cash settlement of import VAT by supplying only VAT declaration. According to the European Union law, import VAT doesn’t need not be paid or secured during the import clearance process.

There are some major benefits of VAT deferment for Amazon seller who imports its products from outside the European Union, for example China:

  • it allows the importer to do not „freeze” the cash in the amount of VAT due, which may be used it to fund the current operations;
  • there is a possibility of non-cash VAT settlement – VAT settlement is made by the importer in the VAT declaration.

There are several requirements to use this procedure referred to as the deferred settlement, but it would mean for the Amazon seller that instead of immediate payment of import VAT to the Customs on the border, in order to clear the goods, they just include it in the VAT declaration for the month when the import occurred and no payment is necessary at the import clearance and no VAT is transferred to the Customs account.

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