Importing from outside the EU: import VAT, duties and article 23
Written by Ilias Aarrass6 min read · Last reviewed on 
Written by Ilias Aarrass6 min read · Last reviewed on Sourcing products in China, the US or the UK can cut your purchase price substantially, but at the border something is added: customs duties and import VAT. For many starting web shop owners and traders this is their first encounter with customs, and the carrier's bill feels like an unpleasant surprise. Unjustly so, because as a VAT entrepreneur you reclaim the import VAT, and with an article 23 licence you never even advance it. Here is how importing from outside the EU works.
What you pay on import
Importing from a non-EU country means paying two things. First customs duties: a percentage of the customs value, roughly the goods price plus transport costs to the EU border. The rate depends on the commodity code and ranges from 0% to over 10%; much electronics is at 0%, clothing often around 12%. On top comes 21% import VAT, calculated on the customs value including the duties. Since 2021 there is no small-consignment exemption: even a 10 euro parcel attracts import VAT.
You reclaim the import VAT, not the duties
If the goods serve VAT-taxed revenue, the import VAT is ordinary input tax: you reclaim it in your next VAT return. On balance the VAT only costs you temporary liquidity. Customs duties are not VAT and never come back; book them as purchase costs, deductible from profit. The same goes for the clearance fees the carrier charges for the customs declaration.
Article 23: shifting import VAT to your return
If you import regularly, request the article 23 licence from the tax authority. With it you no longer pay import VAT at the border but declare it in your regular VAT return, deducting it as input tax in the same return. On balance no money moves any more: a purely administrative entry instead of advancing cash and awaiting refunds. The licence is free, requires records that track imports properly, and is almost always worthwhile for importing businesses.
Practical: what you need
The customs side is less work than it seems, because the carrier or a customs broker usually files the declaration for you. What you arrange:
- Request an EORI number once, your identification with customs. It is free and linked to your VAT number.
- Check the commodity code and its rate in advance, so the landed cost, purchase plus duties plus clearance, holds no surprise.
- Keep the invoice, freight documents and import declaration per shipment; the latter is your proof for the VAT deduction.
- If you import more often, submit the article 23 request and pass the licence to your carrier or broker.
What it costs: a worked example
Say you buy trading stock in the US:
Worked example: importing € 4,000 of goods
- Goods plus freight to the EU
- € 4,500
- Customs duties, say 4%
- € 180
- Import VAT: 21% of € 4,680
- € 982.80, reclaimable
- Carrier clearance fee
- around € 20
Result: The real extra cost is € 200: duties and clearance. The € 982.80 VAT returns via your filing, or with article 23 you never advance it
Frequently asked questions
Does this also apply to purchases in another EU country?
No. Within the EU there are no customs and no import VAT; you make an intra-Community acquisition, with VAT reverse-charged to your return. See VAT with foreign clients and suppliers.
How quickly do I get an article 23 licence?
The tax authority usually decides within a few weeks. Apply before planning large shipments, not once the container is already at sea.
How does this differ from the IOSS that web shops mention?
IOSS is a scheme for sellers shipping from outside the EU directly to European consumers, with VAT settled at the sale. This article covers the reverse: you as a business bring goods into the EU to sell or use here.
The carrier charges an advance fee on top of the VAT. Is that allowed?
Yes. Without article 23 the carrier advances the import VAT and duties at customs and charges an administration fee for it. Another argument for the article 23 licence: no advance, so no advance fee.
Is import VAT also due on second-hand goods from abroad?
Yes, on import from outside the EU new or used makes no difference: same customs value, same 21%. If reselling as margin goods, note the margin scheme does not apply to goods you imported with import VAT yourself.
This article provides general information based on the rules known for 2026 and does not replace personal tax advice. For your specific situation, we're happy to take a look with you.
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Ilias
