If your business operates in the technology space, expanding globally is ideal but comes with many complications. One of these is the taxes and fees incurred at checkpoints along the way. Value-Added Taxes (VATs) might seem like an inhibiting factor preventing you from doing business in other countries; however, you can receive a refund on import VATs incurred in foreign destinations easily if you partner with an Importer of Record that has a broad global reach and an extensive record working with any country where you want to do business.
At each stage of production, a value-added tax is placed on a product, and again at the point of sale. Investopedia explains, “VAT is levied on the gross margin at each point in the manufacturing-distribution-sales process of an item. The tax is assessed and collected at each stage, in contrast to the sales tax that is only assessed and paid by the consumer at the very end of the supply chain.” Import VATs are taxes paid on goods purchased in another country, similar to customs duty. These taxes are extremely common – they’re found in over 160 countries and most often in the European Union.VAT procedures differ depending on if a party is acquiring goods from EU countries or importing goods from outside the EU. Import duty may apply if a party is importing from a non-EU country. Figuring out how to register for VATs and the rules and procedures for properly completing a VAT return is complex. If you want to expand your IT business internationally, it’s important to receive these refunds as they pile up in each country in which you want to conduct business.
The good news is you can get help with your importer VAT refund by partnering with an Importer of Record (IOR) who also offers foreign tax refunds for IT companies incurring indirect taxes in foreign destinations. TecEx specializes in applying on your behalf to recover taxes for networking companies shipping equipment internationally as well as anyone working in the technology sphere. This includes taxes beyond import VATs: customs taxes, co-location taxes, and taxes on local purchases. Because TecEx is also an IOR, they can ship your technology hardware seamlessly into 160 countries for efficient customs clearance. They offer instant quotes that can be calculated quickly with relatively few details.It’s important and sometimes required, to arrange an IOR because IT equipment is tightly regulated, and the shipping process necessitates specialist knowledge. They can assist along the entire supply chain, taking on any risks and properly filling out any paperwork like import permits and licenses, along the way. Delays at customs are costly, both in the fees incurred and in frustrating your client.
It’s most efficient to work with a company that has established partnerships along the whole supply chain to minimize complications and streamlines the process. Combining customs compliance with Import VAT refund service enables businesses to have that global reach with only one point of contact. You can’t avoid paying taxes, but you can receive a refund on import VATs or even manage HMRC arrears from HJS Recovery as well as any other indirect taxes with the help of an experienced partner.