Import VAT

Suppliers are increasingly required to import goods into countries and be responsible for paying duty and VAT. This happens when:

• Customers refuse to be the importer.
• Owners of goods require processing or repairs.
• Providers move goods into a country to perform services.

If you face these scenarios, you will need to take responsibility for the clearance of the goods into the destination country. This usually means you must submit import documentation in your own name and pay import duties and VAT, which are charged at varying rates.

Can you reclaim import VAT?

Although duties are a final cost, most import VAT is reclaimable if the goods are moving for business reasons.
For instance, if an exporter opts to import goods intended for more than one customer, the exporter will be required to VAT register in the country of import. This allows them to reclaim any import VAT paid and account for the sales to their customers after clearance.

Another example is when an exporter ships goods into a country for processing and then exports back to themselves once processed. It’s common for the company processing the goods to clear them; however, sometimes they refuse leaving the exporter with an import VAT cost in their own name. In this scenario, the exporter may be able to reclaim this via an application to the import countries tax authorities.

Import VAT refund services from Fiscal Solutions

Fiscal Solutions provide an expert import VAT refund service supporting exporters who incur import VAT. This service:

• Helps businesses to understand the complexities of import VAT and in some countries may even suggest ways of avoiding or deferring import VAT payments, leading to cashflow benefits for the importer.
• Ensure businesses remain VAT compliant where trading or looking to reclaim import VAT.
• Provides foreign traders with the possibility to reclaim import VAT which they incur, either by a VAT registration or via a VAT refund claim.

Do you need an importer of record or an indirect representative when importing your goods?

If you are looking to export goods into any country outside of a free trade zone, you may require an in-country presence either in the form of an importer of record or an indirect representative to import the goods into that country. If you have no presence, you may be restricted from shipping the goods entirely.

Our specialist import solution company Fiscal IOR can provide you with the necessary in-country presence to clear goods for onward delivery, without the need for you to set up a fiscal presence in the country.

For more information regarding our specialist Fiscal IOR service please get in touch here.