V.A.T. is imposed on all imported commodities whether the importer is a person liable to V.A.T. or not. Οn importation, it is considered as an import duty and it is charged and paid at the time at which the import duty is paid according to the customs legislation.
The customs legislation is applied to imported goods for V.A.T. purposes, with the exceptions and amendments provided by the V.A.T. legislation.
V.A.T. paid on importation is considered to be an input tax for persons liable to V.A.T.
2. Standard rate of V.A.T.
In general all importations, with few exemptions provided by the V.A.T. and customs legislations, are subjected to the standard rate of duty, which is 19%.
3. Reduced rate of V.A.T.
All imported goods listed in Annex V to the V.A.T. Law 95(I)/2000 are subject to reduced rate of V.A.T. which is 5%, provided that the prerequisites mentioned there apply.
4. Value of imported goods for V.A.T. purposes
The taxable value for V.A.T. includes:
The case where imported goods are delivered before their clearance for home use is an exception to this rule. This is for example the case whereby goods are sold by the importer to another person while they are in temporary storage or in a customs warehouse. The taxable value in such a case is the value of delivery (i.e. sale), provided it is not lower than the customs value. If the goods are sold under such conditions more than once, the taxable value shall be taken to be the sale price to the last buyer, who will place the goods in free circulation.
- the customs value of imported goods, as defined by customs legislation; and
- all duties, taxes or other levies collected on importation.
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