New import VAT deferment scheme to be introduced in 2022
What is Import VAT Deferment?
When goods are imported in the European Union (EU), an import tax is charged. Although this import tax (VAT) is potentially recoverable, it creates a huge cash flow burden on the importer, who has to pay up to 25% of the value of the shipment at the time of clearing customs.
Local tax authorities are allowed to introduce a deferment scheme if they desire, whereby the VAT is not payable at the time of import if certain criteria are met. Although this is very rare in the EU, France has announced that a deferment option will be made available from 1st January 2022.
Source VATglobal
