The importation of goods constitutes a chargeable event for VAT purposes. It is irrelevant who imports the goods, or for whom they are imported.
Input
For VAT purposes, ‘import’ means the bringing of goods into the European Union. The taxable event of import does not occur in the case of supplies of goods within the Union.
Input VAT
As the importation itself constitutes the taxable event, it does not matter who carries out the import. Import VAT is payable even if the import is carried out by a private individual. The import procedure is often carried out by the parcel delivery service. In such cases, the import VAT (and any import duties) must be paid to customs by the parcel delivery service. The parcel delivery service will, of course, pass on the VAT.
Example
You buy a pair of shoes for €100 from a Chinese online shop. The online shop sends you the shoes from China via one of the major parcel delivery services. When the goods arrive in the Netherlands, the parcel service pays the €21 import VAT (and any import duties) to customs. The parcel service then passes this import VAT on to you. The shoes cost you €121 (excluding import duties).
Reverse charge of input VAT
Businesses that regularly import goods (or have them imported) can obtain a licence from the Tax and Customs Administration to reverse-charge the import VAT on their domestic VAT return. In that case, the VAT does not need to be paid when the goods are released by customs. Provided the conditions for VAT deduction are met, the business may deduct the import VAT in the same VAT return.
Exemption for small consignments
Import VAT is not payable on small consignments. These are consignments of negligible value or those sent by private individuals. A consignment is considered to be of negligible value if its value does not exceed €22. If the consignment comes from a private individual, no import VAT is payable if its value does not exceed €45.
Example
You buy a pair of flip-flops for €20 from a Chinese online shop. The import of these goods is then exempt from VAT. The flip-flops cost you €20.
Exemption abolished
The EU intends to abolish the exemption for low-value consignments. The proposal to this effect is expected before the end of 2016. A key reason for the abolition is that this exemption gives foreign online retailers a competitive advantage over online retailers in the EU. This is because, for deliveries within the EU, VAT is payable as normal on items valued at less than €22.
Example
If you were to buy the flip-flops from the previous example from a Dutch (online) shop or an (online) shop in another EU Member State, VAT would be payable. If purchased in the Netherlands, the VAT would be €4.20. The flip-flops would then cost you €24.20.