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VAT on household import

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Posts: 75
 Donn
Community Member
Topic starter
(@donn)
Member
Joined: 6 months ago

From what I understand, while import of household goods is in principle exempt from duty, current policy makes it impossible to qualify for this when moving to Portugal.  So we're looking at shipping our container more or less right away when we have the resident visas, and paying the VAT duty.

Does anyone have experience, going through household goods import and paying VAT?  Any issues with this, outside of having to pay a reasonable assessment?  We don't have a lot of valuable items, but there will be some large musical instruments, probably a couple thousand euros total value.

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Posts: 820
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(@gerry)
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Joined: 3 years ago

@donn

Provided you can comply with the requirements, i.e. you have a 'Baggage Certificate' and you can meet the timescales, you should be able to import your personal effects free of duty and VAT. Can you clarify your comments please and I will gladly check this with a Portuguese Customs broker. 

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 Donn
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(@donn)
Joined: 6 months ago

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Posts: 75

@gerry Thanks, the problem is that one of the requirements is that the tax address on the NIF be the shipping destination.

Once the consulate has issued our D7 residence visas,

  • we must move to our Portugal residence, but (after recent changes in the rules?)
  • I won't be able to change NIF address until an undetermined date months later.  

I assume this is going to be the common case for everyone, though maybe more or less of an issue depending on your housing situation.  But since in the past it has indeed been possible to qualify for the exemption, all the advice and instructions for household goods import is based on that scenario -- and we've heard rumors that in the scenario we're looking at here, there could be "problems."  Mostly likely the problem is just that one has to pay a 23% tax on somewhat arbitrary value.  But it would be great to have a story from someone who has done it.

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Posts: 392
Premium Club Member
(@jeanne)
Member
Joined: 2 years ago

In addition to (potential) VAT, it sounds like there may also be some other duty fees payable? I expect VAT is a % of the declared value of the shipment, but does anyone know how the  'duty' is calculated?

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Posts: 820
Admin
(@gerry)
Noble Member
Joined: 3 years ago

Yes. Duty will be around 8% and VAT 23%. The value will be the value of the goods plus all the shipping and insurance costs up to arrival in Portugal, commonly known as the CIF value. I will be speaking with a Portuguese Customs broker tomorrow and will respond further........

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