Customs taxes and duties in Portugal can greatly affect the overall expenses of a shipment, underscoring the importance of comprehending their calculation methods and determining the party responsible for payment.
This knowledge can streamline the process and alleviate potential complications for both senders and recipients, ultimately saving valuable time and resources in Customs and taxes.
In Portugal, import duty and Customs taxes are computed using the CIF method, encompassing the value of the imported goods along with associated shipping costs. This can result in taxes reaching up to 23% of the total.
Customs duties and taxes serve to bolster national revenue and shield domestic industries. Virtually all international shipments undergo assessment for duty and tax, with customs authorities relying on details outlined in the commercial invoice and accompanying documents.
Clearance of shipments from customs hinges upon the settlement of dues to the authorities. Customs charges are determined by various factors, including:
- Product Value
- Applicable trade agreements
- Country of origin
- Product description and intended use
- Harmonised System (HS) code classification
- Specific regulations of the destination country
Difference Between Value Added Tax (VAT) and Goods and Services Tax (GST)
In most nations, a national tax is levied based on the value of goods and services, though terminology may vary. In countries like Canada, the U.S., Singapore, Australia, and New Zealand, this tax is referred to as the Goods and Services Tax (GST).
Conversely, the UK and the European Union (EU) employ the Value Added Tax (VAT) system. Businesses registered for VAT and subject to full taxation do not bear the ultimate burden of VAT, as it is a tax on consumer spending. While VAT may be known by different names such as IVA, TVA, BTW, and AFA in various countries, the underlying principle remains consistent.
For specific VAT rates within the EU, please refer to the European Commission Taxation and Customs Union website.
GST
Goods and Services Tax
Canada
U.S.
Singapore
Australia
New Zealand
VAT
Value Added Tax
UK
European Union (EU)
All information is correct at the time of publication and Inlis consulting Portugal accepts no responsibility for information relating to third-party contact details changing without prior notice.