San Marino Sales Tax: How Its Import Tax System Works

San Marino’s approach to taxing goods and services is distinct, as it does not use a Value Added Tax (VAT) common in the European Union or a retail sales tax model familiar to those in the United States. Instead, the country operates on a unique framework centered on the importation of goods. This system has important implications for how prices are structured and how businesses operate within the republic.

The Single-Phase Import Tax System

San Marino’s primary indirect tax is the Imposta sulle Importazioni, or Tax on Imports. This is a single-phase tax, meaning it is assessed only one time when goods are first brought into the country by a registered business. This model differs from a multi-stage VAT system, where tax is applied at each step of production.

The cost is factored into the final retail price, so while consumers pay the tax, it is not listed as a separate line item on a receipt. The standard rate for this import tax is 17%, and the system is governed by Law No. 40 from 1972.

Taxable Transactions and Exemptions

The import tax applies broadly to all goods and related services that are imported into San Marino. This includes a vast range of products, from raw materials to finished consumer goods. The tax is calculated on the taxable base of the imported items, which is their purchase value. For example, a computer accessory bought by a local retailer for €1,000 would be subject to a €170 tax upon import.

Specific categories of goods benefit from reduced tax rates:

• Business assets purchased for company operations: 1%
• Certain food products like dairy, vegetables, and pasta: 2%
• Agricultural products, live animals, and pharmaceutical items: 2% and 6%
• Vehicles instrumental to a business: 8% (halved for second-hand vehicles)

Some transactions are exempt from this tax framework. While the tax focuses on the import of goods, certain services fall outside its scope. If goods are imported into San Marino and then subsequently re-exported, the import tax paid can be refunded.

Requirements for Businesses

Any business intending to import goods into San Marino must first be recognized by the state by obtaining an Economic Operator Code (Codice Operatore Economico, or COE). This unique identification number is used by tax authorities to track import-related obligations. The application for a COE is submitted to the Chamber of Commerce and requires providing foundational business documentation.

Beyond registration, businesses have significant record-keeping responsibilities. They must maintain all documentation for imported goods, including purchase invoices, which serve as the basis for calculating the tax due. These records are subject to review by the Ufficio Tributario (Tax Office) to ensure compliance. Since the tax is paid upfront, clear financial oversight is needed to manage cash flow.

Filing and Paying the Tax

The process of remitting the import tax is managed electronically. After goods are imported, businesses must submit the related purchase invoices to the Tax Authority through an online government portal for economic operators. This submission triggers the tax assessment, and the Tax Office then issues a payment notice to the business detailing the amount of tax due, which must be paid upon receipt.

In addition to these filings based on individual import transactions, businesses must also file an annual declaration. This yearly summary reconciles all import activities. If the declaration reveals any underpayment, the outstanding balance must be paid by the filing deadline.

Tourist Tax Refunds

Visitors to San Marino who are not residents of San Marino or Italy may be eligible for a refund on the import tax they pay on purchases. This tax-free shopping scheme allows tourists to reclaim the tax embedded in the price of goods they buy and take with them when they leave. To qualify, the total purchase from a single retail store must exceed €258.23.

To initiate a refund, a tourist must request a tax-free form from the retailer at the time of purchase. The store will complete the form, detailing the goods purchased and the amount of tax included in the price. This form is the primary document for the refund claim.

Before departing San Marino’s territory, the traveler must present the completed form, the purchased goods, and their passport to a customs office for validation. Given San Marino’s location, this validation is performed by Italian customs officials at the border. Once the form is stamped, the tourist can claim their refund from designated refund operators, often located at airports or border crossings.