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:
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.