Import VAT and How You Can Retrieve It
Value-added tax and shipping duties are often considered unavoidable costs associated with exporting goods and doing business globally. Articles subject to value-added tax (or VAT) differ from country to country and this system of taxation is implemented in over 160 countries across the globe, most commonly however when shipping to and from the European Union. This tax is placed on a product whenever value is added at a stage of production and at final sale. The amount of VAT charged is the cost of the product, minus the cost of materials that have already been taxed.
One drawback of this system is an increase in cost to business owners, particularly those who are leasing expensive technologies to clients overseas. If they’re not a local tax paying resident of the receiving country, VAT can extend up to 25% of the goods’ commercial value. Furthermore, 90% of their total shipping costs can be a result of various import taxes which can put a great burden on doing business internationally. What resellers need in particular, is a global distributions partner that can help alleviate some of these heavy expenses, and secure them an import VAT refund promptly.
TecEx is one global distributions partner and importer of record (IOR) who can help get your taxes back. This is one of very few full service IOR companies that offer import tax recovery (including VAT), with 100% retrieval from at least 40 of the 136 countries with which they hold a point of presence. Typically, clients see this money within 6 months of the shipment’s clearance at customs. They are also able to recover the sales taxes included in co-location costs. The company is thorough and provides you with the correct numbers the first time around, preparing all the necessary paperwork for you, including any and all types of customs support documentation (permits, licenses, certifications) required, saving you extra work.
Other ways in which this expert importer saves their clients money and hassle is by offering guaranteed clearance within ten days of a quote’s approval, alleviating costly delays at customs or interruptions to the business they’re fostering with their clients. Furthermore, this company only charges the landed-cost quote despite any changes to the receiving country’s laws or challenges posed by them once the customs approval process begins. Because they work in over 120 countries, they provide a one stop shop for those exporting sensitive materials like computer technologies, streamlining cross-border transactions to become faster, simpler, and compliant every time.
Rather than writing off import taxes as the cost of doing business, retrieve your taxes and save money with a respected importer of record that can offer you more than simply signing off on your assets when they arrive at customs. Choose a global distributions partner that goes above and beyond in ensuring your technologies reach their destination safely and without breaking the bank, one that takes charge of the process allowing you to focus on building revenue and international partnerships where your competitors aren’t.