3.2.3. Monthly settlement process

The person using the special regime (normally the customs representative acting on behalf of the importer or consignee) is responsible for collecting the VAT from the consumer and for transferring the VAT amounts collected to customs authorities. This settlement must be made before the sixteenth day of the month following the month in which the VAT is collected.

Pursuant to Article 369 septvicies ter of the VAT Directive, VAT collected under the special scheme must be reported electronically in a monthly return. The declaration shall indicate the total amount of VAT collected during the relevant calendar month. It should be noted that this declaration is not a customs declaration within the meaning of Article 5, point 12, of the UCC .

However, Member States may require that the person using the special scheme fulfils the conditions applicable to the authorisation of deferral of payment under Article 110 of the UCC. This possibility, i.e. not collecting VAT at the time of import of each individual shipment, already exists in several Member States. In order to use the same authorization, it must be checked whether the deadline is the sixteenth day of the following month.

Persons benefiting from the special scheme must keep a record of customs clearances where VAT has been collected under that scheme during a period determined by the Member State of import. This record must be sufficiently accurate to enable the tax or customs authorities of the importing Member State to verify whether VAT has been correctly declared and collected. For more information, see Chapter 4, Section 4.3.6 of the Explanatory Notes on VAT .

If the goods could not be delivered during the same month in which they were released for free circulation, this means that VAT could not be effectively collected that month, in accordance with Article 369. septvicies ter, section 1, of the VAT Directive. This VAT amount must be reported the following month once the delivery has actually taken place and the person benefiting from the special regime has collected the VAT from the importer.

Example:

On 31 August 2021, the Bulgarian postal service operator declares goods for release into free circulation in Bulgaria as an indirect customs representative of the consumer. The consumer pays the Bulgarian postal service operator the amount of VAT corresponding to the standard VAT rate on 2 September 2021. The Bulgarian postal service operator is obliged to pay this VAT by 16 October 2021, as well as any other VAT collected under the special regime during the month of September 2021.