Is VAT Paid on Additional Customs Duty Deductible? A Clear Statement from the Revenue Administration

Is VAT Paid on Additional Customs Duty Deductible? A Clear Statement from the Revenue Administration

The additional customs duty, commonly referred to as ACD, applied to imports from countries outside the EU and free trade agreements is on the agenda of many companies. The most frequently asked question for companies paying this duty is: can the VAT paid on the additional customs duty be claimed as a deduction?

According to the latest assessment, since the additional customs duty is not considered a measure applied within the scope of a safeguard measure, it appears possible to claim the VAT corresponding to the additional customs duty amount as a deduction. In other words, when additional customs duty is paid during importation, the VAT calculated on this duty falls within the scope of deductible VAT rather than non-deductible VAT.

This matter is also significant in terms of the VAT base, since many taxes and financial obligations paid during importation are included in the VAT base calculation. As a result, companies both pay the additional customs duty and face an increased VAT amount linked to it. Thanks to this clarification, businesses can offset this VAT through the VAT deduction mechanism rather than treating it as an unrecoverable cost.

In summary, additional customs duty may apply, but since this duty is not classified as a safeguard measure, the VAT arising from the additional customs duty is deductible.

This interpretation provides a significant advantage for importing companies in terms of cost management and VAT planning.