Import VAT

Category: Tax

Definition (plain English)

VAT or GST charged when goods enter a market, often recoverable later depending on importer setup, local rules, and documentation.

Why it matters commercially

Import VAT affects cash timing even when recoverable, while blocked or non-recoverable VAT can become a real landed-cost component.

Example

Finance approved the margin but had to arrange extra cash because import VAT was payable at clearance and recoverable only in the next filing cycle.

Common mistake

Treating all VAT as either permanent cost or irrelevant cashflow without confirming recovery status, payment timing, and required import evidence.

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