Import of Goods
What is the Import of Goods?
Simply put, import of goods is the import of goods from a third country (e.g., China, Russia, etc.) to the European Union, and all formalities associated with this import are import procedures.
The place of import is the EU country where we carry out import procedures.
At the place of import, the goods are present at the moment of release for free circulation or cease to be subject to special procedures such as customs warehouses, processing, or transit. So, if goods imported from China into the EU enter Germany, we can open a transit procedure there. If it is concluded in Poland – in such a case, Poland will be the place of import.
Import of Excise Goods
The import of excise goods works similarly. It is any import of excise goods from a third country to Poland. The exception are goods subject to special procedures:
- external transit,
- customs warehouse,
- free customs area,
- temporary clearance,
- active processing
As a result, you only pay excise duty and VAT on import when you release the goods for free circulation in the EU in Poland.
For Imported Goods, There is an Obligation to Pay VAT.
If customs duty has been paid in Poland and the goods have been released for free circulation in the EU here, then we also pay VAT in Poland.
Both customs duty and VAT constitute input tax – we report it in the customs declaration and it reduces the output tax payable in the appropriate declaration.
VAT Settlement with VAT-7 Declaration
It is also possible to fully settle VAT on import in the VAT-7 or VAT-7K declaration as both payable and input tax, which eliminates the obligation to pay it and frees up working capital.
The settlement of excise duty is also carried out based on the customs declaration. Excise can be suspended if excise goods are moved to a tax warehouse. Such a procedure can only be initiated from the place of import.
Import is always subject to customs clearance.
However, the declaration for such clearance can take various forms:
- paper (usually SAD document),
- electronic,
- oral (mainly for travelers or when the shipment value does not exceed 1000 euros or 1000 kg) or by crossing the border with the sign “Nothing to declare” (applies to sea and air border crossings).
Electronic declaration systems for imports, unlike exports, are different in each EU country, for example, in Poland it’s “e-Celina”, and in Germany “Atlas”.
Simplified Clearance
Customs declarations can be made in the standard mode or using simplified procedures. They provide many conveniences and exemptions (e.g., exemption from presenting goods or clearance outside office hours).
Before starting the import, it is necessary to determine the customs duty rate using the electronic customs tariff ISZTAR or TARIC. The tariff contains customs rates, division and classification of goods, any import restrictions and prohibitions.
When Not to Pay Customs Duty and VAT?
The aforementioned special procedures are transit, active processing, temporary clearance, customs warehousing. Subjecting goods to one of these procedures means that customs duty and any taxes (VAT, excise) do not have to be paid. However, to use them, you must obtain permission from the customs authority and submit customs security.
