indirect/vat tax perspectives: an overview of import/export
TRANSCRIPT
AN IMPORT IS A TANGIBLE GOOD BROUGHT INTO A JURISDICTION, ESPECIALLY ACROSS A NATIONAL BORDER, FROM AN EXTERNAL SOURCE LOCATION.
IMPORT:
IMPORT VAT (GST) AND DUTIES (CUSTOMS DUTIES AND EXCISE DUTIES) ARE OFTEN APPLICABLE.
IMPORTS: AN OVERVIEW
LIABILITIES MUST BE REMITTED DIRECTLY OR INDIRECTLY BEFORE GOODS CAN CLEAR CUSTOMS INTO FREE CIRCULATION.
IMPORTS: AN OVERVIEW
EXPORTS: AN OVERVIEW
EXPORTS ARE GENERALLY NOT SUBJECT TO THE LEVYING OF TAXES EXCEPT IN COUNTRY / PRODUCT SPECIFIC SITUATIONS.
EXPORTS: AN OVERVIEW
FOR INDIRECT TAX PURPOSES (VAT / GST), EXPORTS ARE OFTEN DEEMED TAXABLE, BUT AT A RATE OF 0% (SUBJECT TO CONDITIONS).
EXPORTS: AN OVERVIEW
THE EXPORTER OF RECORD IS RESPONSIBLE FOR OBTAINING EXPORT CLEARANCE AND FOR COMPLYING WITH EXPORT REGULATIONS.
IMPORTERS NEED TO HAVE THE APPROPRIATE LICENSE / REGISTRATION IN PLACE BEFORE THEY
CAN ACT AS IMPORTER OF RECORD.
EXPORTERS MAY ALSO REQUIRE A LICENSE WHICH IS GENERALLY DETERMINED BY THE
NATURE OF THE GOODS EXPORTED, DESTINATION, AND END USE OF GOODS.
FREIGHT AGENTS WILL OFTEN REMIT THE IMPORT VAT AND DUTY TO THE RELEVANT CUSTOMS AUTHORITY ON BEHALF OF THE
IMPORTER AND THEN SEEK REIMBURSEMENT FROM THE IMPORTER.
THE IMPORT VAT / DUTY IS ASSESSED ON THE DECLARED VALUE OF THE GOODS AT IMPORT.
THIS VALUE CAN BE BASED ON DIFFERENT CALCULATIONS, BUT THE TRANSACTION
VALUE IS THE COMMON METHOD.
SHIPMENTS MUST BE ACCOMPANIED BY COMMERCIAL INVOICES AND ARE DECLARED WITH
REFERENCE TO A COMMODITY CODE, WHICH IS USED TO APPLY THE CORRECT RATE OF DUTY.
‘INCOTERMS’ DEFINE WHO IS RESPONSIBLE AND LIABLE FOR RELATED COSTS IN RELATION
TO A SHIPMENT OF GOODS (E.G., DDP, FOB, EXWORKS ETC.).
IF THE IMPORT IS REQUIRED TO FULFIL AN ORDER / SALE, THE
PLACE OF SUPPLY FOR VAT / GST PURPOSES IS OFTEN
DETERMINED BY WHO ACTS AS IMPORTER OF RECORD.
IMPORT VAT / GST IS RECOVERABLE SUBJECT TO SPECIFIC CONDITIONS, WHICH INCLUDE THE BASIC VAT RECOVERY PRINCIPLES AS WELL AS SOME ADDITIONAL REQUIREMENTS.
THE SALE OF EXPORTED GOODS IS OFTEN ELIGIBLE
FOR A 0% TAX CHARGE, SUBJECT TO CONDITIONS,
WHICH MAINLY REQUIRE THE RETENTION OF SPECIFIC
DOCUMENTATION.
SUPPLY CHAIN STRUCTUREHOW ARE YOU GOING TO GET YOUR PRODUCT TO REMOTE MARKETS?
THE SUPPLY CHAIN STRUCTURE INCLUDES …
SUPPLY CHAIN STRUCTUREHOW ARE YOU GOING TO GET YOUR PRODUCT TO REMOTE MARKETS?
THE SUPPLY CHAIN STRUCTURE INCLUDES …
PLACE OF ORIGIN
SUPPLY CHAIN STRUCTUREHOW ARE YOU GOING TO GET YOUR PRODUCT TO REMOTE MARKETS?
THE SUPPLY CHAIN STRUCTURE INCLUDES …
PLACE OF ORIGIN
PLACE OF SHIPMENT
SUPPLY CHAIN STRUCTUREHOW ARE YOU GOING TO GET YOUR PRODUCT TO REMOTE MARKETS?
THE SUPPLY CHAIN STRUCTURE INCLUDES …
PLACE OF SHIPMENT
PLACE OF ORIGIN
PLACE OF DESTINATION
INEFFICIENCIES CAN ARISE AS SUPPLY CHAINS EVOLVE
AND BECOME MORE COMPLEX UNLESS DILIGENT PLANNING
IS UNDERTAKEN.
DO YOU KNOW …
WHERE THE INDIRECT TAX LIABILTIES ARE BEING TRIGGERED
AND WHO IS RESPONSIBLE FOR THOSE LIABILITIES?
DO YOU KNOW …
THE LOCATION OF WAREHOUSING AND DISTRIBUTIONS AND THE
INVOLVEMENT OF 3PLs, FULFILMENT HOUSES, AND RESELLERS?
LET US HELP YOUR BUSINESS MOVE INTO NEW MARKETS
CONTACT RADIUS:+1 888.881.6576
@RadiusWW
NEED AN EXPERT PERSPECTIVE ON YOUR INDIRECT / VAT TAX LIABILITIES?