Where the calculation starts
Import VAT is not calculated on the invoice price alone. The assessable value built at the customs stage is the base, and duties and other charges applied at that stage can form part of it. Understanding that base is what makes landed cost predictable.
The documents that decide the outcome
Whatever you intend to claim later depends on the paperwork created at clearance.
- Bill of entry with the assessed value and taxes paid
- Commercial invoice and packing list consistent with the declaration
- Bill of lading or airway bill
- Treasury challan or payment evidence for the taxes discharged
- LC or payment documentation linking the shipment to your bank record
Claiming credit on imported inputs
Where imported goods are inputs used in taxable supplies, VAT paid at import may be creditable, subject to the conditions in the legislation and to the claim being made in the correct period. Credits are lost most often for timing reasons, not for eligibility reasons — the document existed, but the period passed.
Practical discipline for importers
Reconcile every shipment against the bill of entry in the month of clearance, and keep landed cost in the same file as the VAT position. When a shipment is queried later, the reconciliation is the answer.