VAT timing for shipments entering EU through Portugal and moving to France
When non‑Union goods arrive in the EU via Portugal under a customs transit procedure destined for France, import VAT is not payable in Portugal at the point of entry; instead, it becomes due when the goods are released for free circulation in France upon completion of the import declaration.
How customs transit changes the VAT charging point
Under the EU customs and VAT framework, the physical entry of goods into one Member State does not automatically trigger import VAT if the consignment is placed under a valid transit procedure (for example, NCTS common transit or an equivalent T1 transit). While the goods remain under transit, they retain their non‑Union status for customs purposes and can be transported to the destination Member State for import clearance.
Key operational implications for logistics providers and carriers:
- VAT payment shifts to destination MS — Import VAT is collected when the consignee or importer completes the import declaration and the customs authority grants release for free circulation in France.
- Transit guarantee and documentation — A transit guarantee and an active NCTS manifest (or T1 document) are required to move the cargo under transit without paying import duties and VAT at the entry point.
- Carrier responsibilities — Carriers must ensure transit paperwork accompanies the shipment until customs discharge at the French customs office to avoid unintended import declarations in Portugal.
Common transit mechanisms and systems
In practice, transport operators use the New Computerised Transit System (NCTS) or national transit documents to register the movement. For road haulage, the procedural documents commonly include a T1 transit declaration (for non‑Union goods) and a supporting commercial invoice and packing list. Where applicable, TIR carnets may be used for road transport but do not replace the requirement to lodge the customs transit declaration in the EU system.
Customs and VAT steps from entry to release for free circulation
The workflow for a non‑Union consignment entering via Portugal and imported in France typically follows these stages:
- Arrival at Portuguese border or port and lodgement of an entry summary and transit declaration under NCTS.
- Movement under customs transit conditions to a designated French customs office.
- Presentation of goods in France, with the consignee or importer lodging an import declaration and paying import duties and import VAT (unless deferred accounting applies).
- Release for free circulation in France after customs acceptance.
Required documentation checklist
| Document | Who issues/holds it | Purpose |
|---|---|---|
| Commercial invoice | Shipper | Value of goods for customs valuation and VAT base |
| Packing list / bill of lading | Carrier / shipper | Evidence of consignment contents and transport contract |
| NCTS transit declaration / T1 | Declarant / carrier | Enables movement under transit without paying import VAT at entry |
| Import declaration (DA/DAU) | Importer of record | Customs clearance and assessment of duties and VAT in France |
| EORI number | Business entities | Required for customs declarations across EU |
VAT accounting and cash‑flow considerations
Because import VAT is charged in the destination Member State, logistics planners and finance teams must manage cash flow to cover VAT payments at the point of import. Two common approaches reduce working capital strain:
- Deferred VAT accounting — VAT‑registered importers in France can, where national rules allow, use deferred accounting mechanisms to declare import VAT on their periodic VAT return instead of paying at import.
- Importer of record arrangements — Appointing a local importer of record or a customs broker in France who can lodge the import declaration and handle VAT payments on behalf of the consignee.
Risks and compliance pitfalls
Failure to maintain the transit status until arrival in France can lead to unintended consequences:
- Customs in Portugal may treat the goods as released for free circulation there, triggering immediate import VAT and possible penalties.
- Incomplete or missing transit documentation may result in financial guarantees being called or delays that compromise delivery SLAs.
- Incorrectly assigned importer of record status can shift VAT liability and create disputes between parties.
Operational recommendations for carriers and freight forwarders
To reduce compliance risk and optimize cash flow, logistics operators should implement the following practices:
- Verify the validity of the transit declaration and ensure it remains active until arrival at the French customs office.
- Obtain and check the consignee’s EORI and VAT registration details in France before departure from Portugal.
- Coordinate with customs brokers to confirm whether deferred VAT accounting can be used by the importer in France and document this in commercial terms.
- Insure against transit delays and maintain strong chain‑of‑custody records to demonstrate compliance if authorities query the movement.
Table: Comparative VAT rates and their relevance
| Member State | Typical standard VAT rate (example) | Implication for transit |
|---|---|---|
| Portugal | 23% | If transit is valid, VAT need not be paid at Portuguese entry. |
| France | 20% | Import VAT charged on release for free circulation in France. |
How GetTransport can help carriers and shippers
GetTransport provides a platform that connects carriers, forwarders and shippers with a focus on transparency and flexibility. By using modern technology and real‑time order flows, carriers can select the most profitable jobs, manage document workflows (commercial invoices, NCTS entries, import declarations), and reduce dependence on a few large corporate customers. The platform’s tools help carriers influence their income by choosing routes and loads that match capacity and cash‑flow needs while minimizing compliance-related delays through verified order data.
Where applicable, GetTransport’s marketplace enables rapid matching for container freight and container trucking requests, simplifying the process of moving international shipments under transit procedures and ensuring carriers have access to consistent demand even for cross‑border transport to destination Member States like France.
Interesting figures
As a practical reference, note that standard VAT rates in the EU typically range from around 17% to 27%, with Portugal at 23% and France at 20%. These rate differentials affect the VAT amount due on import and the financial planning of cross‑border shipments.
Highlighting the value of marketplace visibility: carriers that diversify routes and use digital load‑matching platforms reduce empty miles and improve average revenue per trip, which directly offsets liquidity pressures caused by import VAT timing.
Key takeaways and practical summary
Transit procedures allow non‑Union goods to enter the EU via Portugal and be imported in France without immediate Portuguese VAT payment; the import VAT is due at the point of release for free circulation in France. Proper documentation (NCTS/T1, commercial invoices, EORI numbers) and clear assignment of the importer of record are essential to avoid unintended VAT liabilities and detention risks. Carriers and forwarders should build procedures to confirm transit status, coordinate with customs brokers, and consider deferred accounting options to manage cash flow.
Highlights: the operational importance of securing valid transit documentation, the cash flow effect of import VAT timing, and the need for accurate importer designation. While published reviews and broker feedback are useful, nothing replaces hands‑on experience with routing such consignments. On GetTransport.com, you can order your cargo transportation at the best prices globally at reasonable prices. This empowers you to make the most informed decision without unnecessary expenses or disappointments. Emphasize how readers benefit from the convenience, affordability, and extensive choices provided by the platform: transparency, verified orders, and simplified carrier selection. Join GetTransport.com and start receiving verified container freight requests worldwide GetTransport.com.com
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In conclusion, careful use of EU transit procedures enables import VAT to be legally deferred until import in the destination Member State, reducing duplication of tax payments at entry ports like those in Portugal. For logistics, customs and finance teams, adherence to correct documentation and importer arrangements is critical to preserve cash flow and avoid penalties. GetTransport.com directly supports these needs by offering an efficient, cost‑effective and convenient marketplace for container freight, container trucking and international cargo movement — simplifying shipment matching, forwarding and haulage while helping users manage the full cycle from booking to delivery.