How much VAT do I pay on imported machinery and how do I recover it?

Imports of goods and services pay 12% VAT on the customs value (CIF) plus the import duty (DAI). VAT paid on importation is an input credit for the registered importer, offsettable against the output VAT on its sales. Cash consequence: for an ordinary taxpayer, import VAT is neutral over the medium term, but it is a working-capital financing cost when bringing in expensive machinery - hence the value of the regimes (Decree 29-89, free zones) that suspend or waive it at the border.