VAT

VAT

  • VAT RECLAIM FOR SCRAPPED MATERIALS, ,

    QUESTION: Does any of the membership have experience with scrapping material in Hungary?  We work with an OEM there and I am trying to understand the VAT ramifications for scrapping.  Can the OEM claim the VAT back once the goods are scrapped? ************** Answers:Scrapping is „part” of the production. According to the VAT rules, most […]

  • VAT AND EORI NUMBERS

    QUESTION: We currently have a UK subsidiary entity that we import through. It has both a UK VAT and EORI number. My company has set up a second UK subsidiary and wants to import under the new entity as well. My question is does the new entity require a new VAT and EORI number or […]

  • How VAT is calculated

    QUESTION: I’m interested in learning in depth the in & outs of VAT when importing goods in other countries (i.e EU and Asia).  I’m looking for suggestions how other members with this knowledge got to learn it.  I’m a Trade Compliance professional but VAT has never been part of my job until now, so I’m […]

  • VAT within the EU and drop shipments from the US

    QUESTION: I’m trying to understand how VAT works in the EU because we have a manufacturing site in the US so we are asked by our affiliates in the EU to drop ship to their customers in the EU. Scenario: Company A in Poland places an order with Company B in the UK. Company B […]

  • Additional VAT due to increased prices and subsequent VAT Recovery

    QUESTION: We have a situation where, post entry, the value of the goods into our related entity in Spain increased. This is due to unrealized / unpaid royalty payments of $10,000,000 at the time of entry. There is a 10% duty on the product. So we will owe 1,000,000 duty for this. In addition to […]

  • RECOVERING CN VAT

    QUESTION: Is it possible as a US based company to recover VAT in China? We recently shipped a RTV ( Return to Vendor), new unused product- DDP back to our vendor in China. *********** Answers: I’ve always been told never to use either EXW or DDP for international shipments due to the issues that are […]

  • CN TO EU SHIPMENT VAT

    QUESTION: If we have shipments out of China to EU under DAP, do we, as a seller, have to pay VAT? The incoterms spells out that, under DAP term, the buyer is responsible for all import related duties and taxes. But VAT is not exactly import-related. I did some research online and many mentions that […]

  • VAT NUMBER REQUIRED FOR O/BL TO EU

    QUESTION: We are shipping material from Asia directly to our EU subsidiaries and sometimes directly to their customers.   Many of the contracted ocean carriers insist on getting the VAT numbers of the parties on the bill of lading (consignee and notify parties).   This VAT number does not show up on the bill of […]

  • VAT PIPE IMPORTED INTO CHINA

    QUESTION: Would any members know the VAT applicable to pipe imported into China? ========= If you are classifying steel pipes into China in 730439… then the VAT is 17%. ==========

  • MAQUILA NAFTA AND VAT

    Question: Company A ships US and non US origin parts to company B (shelter company in Mexico that operates a Maquila) Maquila does not pay VAT on the parts imported into Mexico. Goods are assembled into a “substantially new and different article of commerce” Goods are Exported from the Shelter Co. (Maquila) Some are duty […]

  • EU VAT EXCLUSION

    Question: When a qualifying and originating articles are imported into the EU (From Sri Lanka to the Netherlands for example), the duty rate will be 0%, however is VAT also exempted or must the VAT tax still be paid upon importation ? I cannot find any information in the EU Directives, the EU Tariff (TARIC) […]

  • EU VAT AVOIDANCE

    Question: I’m trying to determine how an aircraft engine needs to be imported into the EU, if VAT charges will be due on disassembled components sold or repaired in the EU, and if there are any other considerations to make.  Any advice will be much appreciated! Details: ·         1 Civil aircraft engine (used) originally assembled […]