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.
We can help with all matters relating to VAT and sales taxes on imports and exports including the following:
- customs valuation planning and compliance;
- tariff suspension, relief and deferment schemes;
- duty recovery and repayment of import VAT and sales taxes;
- customs approvals, registrations and guarantees in connection with import VAT and sales taxes.