Centralised Customs Clearance The VAT challenge

Ways to pay and deduct import VAT Pay along with customs duty –Using customs deferment rules –And deduct in the next VAT return –or Postponed accounting –Show VAT number on SAD, but pay and deduct using VAT return –MS impose conditions

Person liable to pay Importer (person liable for customs) Importer but fiscal rep an option Importer or fiscal rep obligatory (MS impose conditions)

4200 and Art. 143(d) Exempt import followed by ICS VIES statement MS impose conditions for exemption (eg. time limits, guarantees, checking VAT number)

Should there be a VAT scheme for CCC users? Full benefit of CCC not possible without VAT Concerns about national resource – mind the tax Concerns re discrimination, large v sme Concerns re favouring imports over domestic transactions

Two possibilities discussed. Tax-based solution Customs -based solution

Tax-based solution (UK) Single place of compliance - declaration for import VAT - registration numbers - payment MS of establishment transmit data and payments Model on OSS experience in other VAT areas Maybe use a special Customs Procedure Code?

Who should qualify? Open to all traders who fulfil criteria, large or small - VAT registered -vetted and approved by Customs - high credibility -no concerns about fraud risk

Challenges in tax-based approach Payment modalities - 4 possibilities: -Rules of MS of establishment -Rules of MS of import -Mandatory postponed accounting -Mandatory pay at time of customs payment Multiple rates/exemptions

Customs-based solution (Neth) Single place of compliance – MS of establishment Data exchange between MSs - identify goods, request release -traders VAT number -MS of destination Fictitious ICS and ICA - 2 possibilities: trader or IT

Challenges in Customs-based approach What about scenario of goods remaining in MS of import? - Limit the scheme or - Be ambitious

Business wants - certainty -centralised compliance to cover as much as possible -preferably common rules -open scheme to agents, please

Excises Developing issues within excise esp ECMS Should we exclude excises? Should we include excises? First solve the VAT issue, then see how can we accommodate excises.