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12.1. VAT on the Supply of Goods by Non-Residents

Definitive imports of tangible goods are subject to VAT. The liable taxpayer is the local importer and the applicable rate, depending on the type of good involved, may varies from 10.5% to 21%. VAT is a running credit-debit balance; thus, VAT cost generated by the import of goods (input VAT) may be offset against output VAT arising from the importer’s business activity. Excess output VAT over input VAT yields the taxpayer's VAT liability for any given month.