Don’t Let Import Taxes Prevent Global Partnerships

By
IntelligentHQ
Don’t Let Import Taxes Prevent Global Partnerships

There are several reasons why small businesses and larger corporations are hesitant to expand into foreign markets. A common one is extra costs incurred from customs duties and import VAT — because of the price tag and because of the extra time and hassle required to figure out proper rules, regulations, and fetching a decent refund where possible. Luckily, tax recovery specialists can help with maximizing refunds using proper time-saving procedures.

Companies importing and paying for local expenses in nations where they are not registered, aka non-resident businesses, can get dinged with significant import VAT charges and other indirect taxes, but these businesses can potentially recover some or all of these amounts. Some common charges include:

  • Co-location costs
  • Local purchase of goods
  • Travel and lodging
  • Vendor charges
  • Import VAT or Custom Duty

For EU member states many goods are in free circulation and can be imported with relative ease and few duties or VAT costs, provided there is proper registration. International trade, however, comes with different rules. Not all nations offer refunds, and the amount of the return depends on the exporting and importing countries’ rules and trade agreements. These rules are subject to change, sometimes with little notice. Those whoalready benefit from tax recovery arrangements could do so more efficiently and receive a higher return with the help of experienced professionals.  

The smartest and most efficient way for businesses and entities shipping goods overseas to get import VAT refund help is to partner with an Importer of Record (IOR)that also performs the work of a tax recovery specialist. A seasoned IOR has global reach in most destinations and stays abreast of the changing requirements in tax law as well as in global supply chain logistics. A non-resident importer like TecEx guarantees easy customs clearance, door-to-door service, and full tax recovery services for those incurring indirect taxes in foreign nations. They have specific expertise in IT equipment, hardware, medical devices, and other highly regulated and controlled shipments.

TecEx specializes in the following tax recovery scenarios you might experience in 180 destinations:

  • You ship goods overseas to an import VAT refund country where you retain ownership of the items
  • You store goods located in an import VAT refund country
  • Employees of your company travel or participate in trade shows in an import VAT refund country
  • You purchase equipment or other goods in an import VAT refund country

There are many other scenarios where a refund or a better refund than you’re currently receiving is possible, and these situations are subject to changes. Having one point of contact for your official Importer of Record plus tax refund needs saves extra time and money. Plus, you can feel safe knowing they’ve handled every scenario before.

There are several challenges to growing your business and reaching into international markets, but many of these can be achieved by making wise partnerships and benefitting from the expertise of an IOR. Your clients will be satisfied when they receive their shipments in a timely manner with streamlined, first-pass customs clearance, and you can pass the savings down to them once you’ve started receiving reduced fees and duties.Partner with an IOR and tax specialists who are experts working with virtually any country and you can focus on growing your business.

This is an article provided by our partners’ network. It might not necessarily reflect the views or opinions of our editorial team and management.

Contributed content

RELATED ARTICLESMORE FROM AUTHOR