How to deal with VAT, customs duties, shipping costs, etc.?

VAT

Only VAT payers account for VAT. The amounts of expenses claimed in the VES project must always be exclusive of VAT.

For non-VAT payers, you do not account for VAT on invoices received and include the VAT amount in the purchase price of the purchased materials, goods, or assets. You then apply the full amount of the invoice to the VES project.

For both groups (payers/non-payers), other expenses related to the purchase of goods/services/fixed assets – customs duties, transport costs, insurance during transport, customs services, etc. – are also included in the expenses claimed for VES projects.

Customs duties, transport costs
All goods arriving in the EU from abroad are subject to customs procedures. In accordance with EU legal standards, these goods must be released for free circulation, with the request for release submitted by the recipient of the goods or an appointed representative, known asthe declarant(Czech Post, shipping companies).

Customs duties generally rangefrom 1% to 10% of the value of the goods(plus any international transport or insurance costs) andare calculated on the basis of the accompanying invoice. Importers can calculate the amount of customs duty using theTaric CZ system, but it is importantto classify the goods correctly in the appropriate category.

The customs value of imported goods (the basis for calculating customs duties) includes:

  • intrinsic value of goods,
  • foreign transportation costs,
  • any insurance, etc.

The following are included in the VAT calculation base:

  • intrinsic value of goods,
  • customs duty, if assessed,
  • transport costs (within the EU), if not already included in customs duties (customs value),
  • customs declaration service.

(Source: https://portal.pohoda.cz/dane-ucetnictvi-mzdy/ostatni-dane/clo-a-celni-rizeni/).

If the insurance is paid directly by the department participating in the project (laboratory, clinic, etc.), the insurance costs can be recognized in direct connection with the project, in an amount proportional to the use of the item in question, in this case, for example, laboratory equipment for the project. If the insurance is paid generally by the institution, it cannot be claimed from overhead costs/indirect costs (again proportionally according to use).