Detailed explanation of Faroe Islands customs import and export taxes
Summary:As an autonomous territory of Denmark, the Faroe Islands has a certain difference in tax system from Denmark, but it is relatively similar overall. For import and export goods, the following types of taxes are mainly involved.
1. Tariffs
Basic principles: As part of the EU Customs Union, the Faroe Islands generally
do not impose tariffs on goods imported from EU member states.
Imports from non-EU countries: For goods imported from countries outside the
EU, corresponding tariffs need to be paid in accordance with the Common Tariff Schedule. The
tariff rate depends on factors such as the item and origin of the goods.
Preferential tariffs: The Faroe Islands may sign bilateral or multilateral
trade agreements with other countries and enjoy preferential tariff treatment.
2. Value-added tax
Scope of application: Value-added tax applies to goods and services sold in the
Faroe Islands.
Input tax and output tax: Imported goods are subject to input tax when they are
imported, and can be deducted from input tax when they are sold.
Tax rate: The rate of value-added tax is usually determined by the nature of
the goods, and is divided into standard rate, zero rate and reduced tax rate.
3. Consumption tax
Specific goods: Consumption tax is mainly applied to some specific consumer
goods, such as tobacco, alcoholic beverages, gasoline, etc.
Tax rate: The tax rate of consumption tax is usually higher to limit the
consumption of such goods.
4. Other taxes and fees
Statistical tax: For imported and exported goods, statistical tax may be
required.
Port charges: Imported goods also need to pay port charges, including wharf
fees, storage fees, etc.