How to calculate VAT when importing goods

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The calculation of VAT on imports, which are subject to import customs duties and excise taxes, is made according to the formula:

VAT amount = (Ts + Tp + A) x H.

Tc is the cost of imported goods, which is used to calculate turkey whatsapp number data customs duties, i.e. customs value. It includes the price of the goods, as well as the costs of their transportation and delivery, including transport insurance.

Тп is the amount of import customs duty. The duty rate is determined depending on the commodity category code according to TN VED and is usually expressed as a percentage of the customs value. The duty amount is calculated by multiplying the customs value by the corresponding rate.

A is the amount of excise tax, which is levied only on certain types of products and substances. The excise tax rate is usually set per unit of product (liter, piece, kilogram, etc.), and the total excise tax amount is calculated as the number of imported units of product multiplied by this rate.

H is the tax rate expressed as a percentage. The basic rate is 20%.



The procedure for calculating import VAT using a specific example
Let's say we decided to import a batch of equipment from Germany. Its price is 5,000,000 rubles, delivery cost is 300,000, transport insurance is 50,000, customs duty is 30% of the customs value of the goods. Let's calculate the tax.

We determine the customs value . The equipment cost 5,000,000 rubles. Delivery and insurance cost 350,000. Thus, the customs value = 5,000,000 + 350,000 = 5,350,000 rubles.
We add customs duty to this . Let's say that the duty rate for our equipment is 5% of the customs value. In this case, customs duty = 5,350,000 x 0.05 = 267,500 ₽.
We add excise tax . Let's say our equipment is not excisable, so we indicate excise tax as zero.
We calculate how much tax we need to pay using the formula we provided :
customs value ( Tc ): 5,350,000;
import duty levied on the import of goods ( Tp ): 5% of the customs value, or 267,500;
excise duty ( A ): 0;
VAT calculation base ( N ): since our goods do not fall into the category of socially significant, we pay VAT at the full rate - 20%.
Total payable = (Ts + Tp + A) x H = (5,350,000 + 267,500 + 0) x 0.2 = 1,123,500 rubles.

It turns out that you will have to pay RUB 1,123,500 in VAT at customs.