Background
Value added tax (VAT) and other sales taxes payable
on the importation of goods can be a
significant drain on cash
flow or, in some circumstances, an absolute cost to the business.
In many circumstances there is a close
correlation between planning and compliance
for duty purposes and planning and compliance
for VAT and sales tax purposes. For example, in many jurisdictions,
the value for import VAT or other sales taxes is based on the
customs value (i.e. the duty value)
of the imported goods. Furthermore, customs suspension and
relief regimes often provide for suspension
of, or relief from, VAT as well as duty.
However, in certain industries, such
as in some software, media and telecommunications sectors, there
may be very specific or complex VAT or sales tax issues
at importation. These include the "importation" of
services and other intangibles and indeed the
question whether the imported intangibles are treated
as goods or services for VAT and duty
purposes.
How can we help?
We can help with all matters relating
to VAT and sales taxes on imports and
exports including the following:
- valuation planning and compliance;
- suspension, relief and deferment schemes;
- recovery and repayment of import VAT and sales taxes;
- approvals, registrations and guarantees in connection with import VAT and sales taxes.
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