Import VAT Deferment in the EU: A Trade Tool in the Era of Reciprocal Tariffs

Amid escalating global trade tensions and evolving tariff policies—particularly under the Trump administration’s push for “reciprocal tariffs”—the EU’s VAT system has come under scrutiny. While some critics argue that VAT functions as a hidden trade barrier, this perspective often overlooks the mechanisms within the system that support international trade, such as import VAT deferment. Import VAT deferment is a tool available in many EU Member States that can significantly ease the financial burden on businesses importing goods.

João Veiga, Senior Manager at Ryan’s VAT Compliance and Consulting practice, explores how import VAT deferment works, why it matters in the current trade landscape, and how businesses can leverage it to remain competitive and compliant.