March 20, 2022
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Intrinsic value (e-commerce)

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What is the term 'intrinsic value' used for in customs?

The term 'intrinsic value' is used in several fields, such as investment, taxation, etc. In simple terms, it means the real value of an asset.

For customs purposes, the intrinsic value (note, it is not the 'customs value') of an item is important for the calculation of import VAT upon the importation of low-value consignments. The term is used for other purposes as well. For example, the lodging of an entry summary declaration might be waived in respect of goods in a consignment, the intrinsic value of which does not exceed 22 EUR.

What is the 'intrinsic value' of the goods?

Article 1(48) of the Regulation (EU) 2015/2446 sets out the definition of the term 'intrinsic value'.

Intrinsic value for commercial goods is the price of the goods themselves when sold for export to the customs territory of the Union, excluding transport and insurance costs, unless they are included in the price and not separately indicated on the invoice. Any other related costs, that do not reflect the value of the goods in themselves, must also be excluded from the intrinsic value, whenever they are separately and clearly indicated in the invoice (e.g. tooling costs, license fees, export tax, etc.).

Example 1. No information on additional costs
Item’s price: 100 EUR
Intrinsic value: 100 EUR

Example 2. Transport and insurance costs are separately indicated
Item’s price: 100 EUR
Transport costs: 18 EUR
Insurance costs: 5 EUR
Intrinsic value: 100 EUR

Intrinsic value for goods of a non-commercial nature is the price that would have been paid for the goods themselves if they were sold for export to the customs territory of the Union. The definition should also be understood in the same vein as for the commercial goods, meaning the value of the goods themselves, excluding any other costs, taxes or charges mentioned above.

Comments ()

en
Transport services VAT exempt because already in import tax base? You will need to prove it!
24-09-2023

The Romanian company provides transportation services. It transported goods from the port of Rotterdam (the Netherlands) to Cluj-Napoca (Romania) under transit procedure. Goods were released into free circulation in Romania. It treated transportation service as VAT exempt because it assumed that transportation cost was included into the import VAT taxable base. Tax authorities claimed otherwise: the taxpayer failed to provide documents confirming that the transportation cost was included into the import VAT taxable base. Consequently, they denied the exemption. The dispute between the company and the tax authorities reached as far as the Court of Justice of the EU (CJEU), which recently issued clarifications on the application of the provisions of the VAT Directive in this case.

Mark Rowbotham

valuation
en
Transport services VAT exempt because already in import tax base? You will need to prove it!
24-09-2023

The Romanian company provides transportation services. It transported goods from the port of Rotterdam (the Netherlands) to Cluj-Napoca (Romania) under transit procedure. Goods were released into free circulation in Romania. It treated transportation service as VAT exempt because it assumed that transportation cost was included into the import VAT taxable base. Tax authorities claimed otherwise: the taxpayer failed to provide documents confirming that the transportation cost was included into the import VAT taxable base. Consequently, they denied the exemption. The dispute between the company and the tax authorities reached as far as the Court of Justice of the EU (CJEU), which recently issued clarifications on the application of the provisions of the VAT Directive in this case.

Mark Rowbotham

valuation
en
Who is a purchaser in Canada and why does it matter for customs valuation?
17-09-2023

Can a small difference between Canadian customs legislation and the WTO Customs Valuation Agreement really affect the customs valuation process and its outcome? The following article attempts to answer this question.

Peter Mitchell

valuation
en
Who is a purchaser in Canada and why does it matter for customs valuation?
17-09-2023

Can a small difference between Canadian customs legislation and the WTO Customs Valuation Agreement really affect the customs valuation process and its outcome? The following article attempts to answer this question.

Peter Mitchell

valuation
en, lt
Customs valuation – the particularities of different countries
06-08-2023

Customs valuation is one of the most problematic areas of customs, whatever the country or territory. Experts from different continents - from North and South America to Europe and Asia - confirmed this at the 16th Authors' Meeting. The following is a summary of the main conclusions of this event. The topics covered: discounts, advertising costs, “fair prices” vs transaction value, the arm’s length principle when moving stock between branches, sourcing goods from non-market economies, advance valuation rulings, etc.

valuation
en, lt
Customs valuation – the particularities of different countries
06-08-2023

Customs valuation is one of the most problematic areas of customs, whatever the country or territory. Experts from different continents - from North and South America to Europe and Asia - confirmed this at the 16th Authors' Meeting. The following is a summary of the main conclusions of this event. The topics covered: discounts, advertising costs, “fair prices” vs transaction value, the arm’s length principle when moving stock between branches, sourcing goods from non-market economies, advance valuation rulings, etc.

valuation
lt
Muitinio įvertinimo išminties „koncentratas“ - naujoje knygoje
20-07-2023

Redakcijos įvadas. Naujai išleistoje JAV autoriaus Mark K. Neville, Jr. knygoje muitinio įvertinimo tema, pirmoji autoriaus padėka skirta Monikai Bielskienei, „Muitų teisė praktikams“ redakcinės kolegijos narei. Džiaugiamės ir didžiuojamės, bei, žinoma, pakvietėme Moniką pasidalinti susijusiomis mintimis ir įžvalgomis apie knygą, kurią Monika pokalbio metu pavadino muitinio įvertinimo išminties „koncentratu“.

Monika Bielskienė

valuation
lt
Muitinio įvertinimo išminties „koncentratas“ - naujoje knygoje
20-07-2023

Redakcijos įvadas. Naujai išleistoje JAV autoriaus Mark K. Neville, Jr. knygoje muitinio įvertinimo tema, pirmoji autoriaus padėka skirta Monikai Bielskienei, „Muitų teisė praktikams“ redakcinės kolegijos narei. Džiaugiamės ir didžiuojamės, bei, žinoma, pakvietėme Moniką pasidalinti susijusiomis mintimis ir įžvalgomis apie knygą, kurią Monika pokalbio metu pavadino muitinio įvertinimo išminties „koncentratu“.

Monika Bielskienė

valuation
en
Special discount, made in Israel
02-07-2023

The State of Israel is a member of the WTO and complies with the Valuation Agreement. However, with regard to discounts, the State imposes many conditions and obstacles for a discount to be accepted, in a way that may deviate from the spirit of the Agreement.

Omer Wagner

valuation
en
Special discount, made in Israel
02-07-2023

The State of Israel is a member of the WTO and complies with the Valuation Agreement. However, with regard to discounts, the State imposes many conditions and obstacles for a discount to be accepted, in a way that may deviate from the spirit of the Agreement.

Omer Wagner

valuation
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