The import of goods is the bringing of goods from the territory of third countries into the territory of the European Union within the meaning of Section 12 of the Slovakian Value Added Tax Act (hereinafter referred to as “VATA”). When importing goods into Slovakia, the provisions of the customs regulations apply to taxation, unless the Value Added Tax Act provides otherwise. The place of importation of goods is the Member State in which the goods are located at the time they enter the territory of the European Union (Section 18 (1) VATA).
If the imported goods have the status of goods in temporary storage upon entry into the territory of the European Union, or if they are brought into a free customs zone or in a free customs warehouse, or if they are transferred to the customs procedure of customs storage under the customs regime of inward processing, the Customs regime of temporary admission with full exemption from import duties and the customs regime of external transit or transfer to sovereign waters, the place of importation of the goods is the Member State in which these customs measures end (Section 18 (2) VATA).
When importing goods into Slovakia, the tax administrator is the customs authority.
A taxable person wants to import goods from a third country into Slovakia. How should he pay the VAT to the tax office?
The answer
When importing goods from a third country into Slovakia, the provisions of the customs regulations apply to taxation. According to § 84 VATA, the administrator of the value added tax when importing goods is the customs authority, i. e. the tax is levied on the import of goods by the responsible customs authority.
The goods are imported from the Ukraine by a German company based in Munich. The importer - the German company - declares the import in Slovakia and the goods are released for free circulation in Slovakia. The goods should then be transported to Austria to an Austrian company with a VAT identification number assigned in this country. The German importer is registered for VAT in Germany. Will the German importer be charged VAT by the customs authorities?
The answer
According to Section 48 (3) of VATA, the customs authorities do not levy any tax on the import of goods from a third country if the goods are released for free circulation domestically and are immediately followed by an intra-Community delivery of the goods to another Member State (the transport of the goods ends in a Member State other than the country of origin) that meets the requirements for tax exemption under Section 43 (1) to (4) VATA. When importing, the importer must prove that he is registered for VAT purposes in the Slovak Republic and provide evidence that the goods are intended for a buyer in Austria who has a VAT ID number in that country.
A Slovak citizen wants to import electronics from the USA to Slovakia. Is VAT applicable when importing goods from the USA?
The answer
When importing goods into the country from a third country, the tax is subject to the provisions of customs regulations. The import VAT is administered by the customs authority, i.e. the tax on the import of goods is levied by the relevant customs authority.
Slovak trading company (registered for VAT) imported goods from Russia. The importer declares the importation of the goods domestically and the goods are placed under the customs procedure for free circulation in the Slovak Republic. The customs authority has imposed VAT on the importer. Can the importer claim a deduction for import tax?
The answer
The taxable person can deduct the input tax if the VAT is paid to the customs authority when the goods are imported and the taxable person has an import document confirmed by the customs authority in which the taxable person is listed as the consignee or importer and the taxable person also lists the others in the §§ 49 to 51 VATA defined requirements fulfilled.
A Slovak entrepreneur who is not subject to VAT is interested in offering portable filter systems for car paint shops in Slovakia. The Slovakian entrepreneur has so far ordered a filter device from Canada at a price of around 3,500 euros including transport. What is the procedure of a Slovak entrepreneur towards the tax office?
The answer
The VAT on the import of goods is administered by the customs authority, i. e. the import VAT is levied by the relevant customs authority.
In the Czech Republic, import VAT works differently. Every entrepreneur registered for VAT who imports goods from a third country into the Czech Republic must declare the import VAT in the VAT return and pay the import VAT. At the same time, he can claim the right to deduct input tax on the import of goods.
In view of the fact that the reverse charge is applicable to imports, the import does not involve any cash flow disadvantage in the Czech Republic.
yourtaxes.cz - Your partner for import VAT in the Czech Republic and Slovakia
From January 1, 2024, a number of significant changes will take place in the Czech tax system - the corporate tax rate will increase, VAT rates will change and, last but not least, the tax burden on natural persons will also increase.
In addition to changes in the area of corporate income tax, the Czech Ministry of Finance is preparing to adjust VAT rates. VAT rates should change from January 1, 2024.
The Czech Republic is planning extensive changes to its tax system, including changes to corporate income tax rates, effective from the beginning of 2024, which should help reduce the state budget deficit.