Italian import VAT deferral and postponed import VAT
We refer to import VAT deferral when the payment of VAT on importation can be delayed to a later date. Payment is still required, but the due date is deferred. We refer to postponed import VAT accounting when the payment of import VAT is done via the VAT return. At that point, import VAT is also deducted with the corresponding nil effect for the taxpayer. Payment of import VAT is not required under the postponed import VAT accounting.
Deferring the payment of import VAT is possible in Italy, however, there is no simplification under the postponed import VAT accounting.
Normally, companies must pay VAT upon importation. Deferring the import VAT allows for payment of import VAT by the last day of month following the month in which importation took place. For example, where an import is made on 15 January, deferred import VAT can be paid by 28 February. Import VAT will be deducted when the VAT return is submitted.
Italian import VAT deferral must be requested on a separate application to the tax authorities. This simplification also requires a bank guarantee in favour of the authorities.