In 1972, a value-added tax (VAT) system was introduced in Italy, and an equivalent tax was introduced also in San Marino, in accordance with the 1939 friendship treaty. However, this tax is not a standard value-added tax, but rather it is an import tax, thus, it is levied only on imported goods and raw resources. For this reason it is locally best known as single stage tax (), as it is only applied one time during importation, while VAT is applied at every exchange. Furthermore, while VAT also applies to services, the import tax only applies on physical goods. Another important difference is that while VAT is computed on the final price paid by the consumer, the import tax is levied on the importation cost paid by the company, which is generally much lower.