The determination of the taxable amount for import taxation is determined by customs law. Article 85 of the Valued-Added Tax (VAT) Directive contains a dynamic reference to the customs valuation provisions of the UCC, the UCC-IA and the UCC-DA. From a VAT point of view, the details of customs valuation are particularly relevant if the importer is not entitled to full input tax deduction. This concerns imports by private individuals, small entrepreneurs as well as cases where importers are required to pay VAT but are denied the right to deduct due to a lack of control over the goods.
Global Trade and Customs Journal