Insights

VAT is a tax applied, according to Article 1 of the VAT and Excise Duty Code (hereinafter, CTVADC), to “transactions conducted in Tunisia, regardless of their purpose or outcome, that are industrial, artisanal, or related to a liberal profession, as well as commercial operations other than sales.”

Article 3 of the same Code specifies:

1. A transaction is deemed to have taken place in Tunisia:

• In the case of a sale, when the delivery of goods occurs under the conditions of delivery in Tunisia.
• For any other operation, when the service rendered, the right transferred, or the object leased is used or exploited in Tunisia.

1. Goods intended for export are considered delivered in Tunisia if the export declaration has not been filed in the seller’s name.

III. Imported goods are considered delivered in Tunisia once they are delivered to a person other than the one whose customs identification number was used for clearance.

Articles 1 and 3 above establish the principle governing the scope and object of VAT.

However, Article 9.I.1. of the CTVADC states: “The VAT that has effectively burdened the elements of the price of a taxable transaction is deductible from the VAT applicable to taxable operations.”

The import freight margin included in customs declarations is part of the goods’ price components. Therefore, according to Article 9, the VAT applied to it is deductible from the VAT applicable to the taxable transaction.

This deduction regime, established by the legislator through Article 9 of the CTVADC, aims to prevent double taxation. Administrative practice appears to support this textual interpretation.

Consequently, the import freight margin is not subject to VAT as it is already included in the goods’ price, which serves as the basis for VAT calculation, in accordance with Article 9 of the CTVADC and consistent Tunisian tax administration practice.