VAT

VAT

  • X-fty USA order to UAE

    Question: Hello ICPA membership, My company is selling inventory (shoes) to a distributor located in UAE.  The distributor is picking up the shipment from our DC and will responsible from there. The transfer of ownership occurs upon pick up as well. My tax team believes we need to apply VAT on top of the sale […]

  • Intersection of Trade Compliance and Indirect Tax

    Question: Wondering if members of the trade community with experience working with VAT, Excise duties on fuel, liquor, and cigarettes can explain how they interact with their indirect tax teams, particularly outside the US (VAT). Would the trade community consider import duties an indirect tax?   If so, how do you manage the sharing/reporting of import […]

  • VAT

    Question: Dear Member: In my new position I audited some entries.  The sellers from Germany stated on the sale invoices that the VAT is incluced. As far as I am aware VAT is exempt when a sale is from the EU to outside the EU, in the case the United States. How best to handle. […]

  • VAT FOR US EXPORTERS

    QUESTION: Is there an EU VAT registration requirement for US companies that export to Europe?  If we do register, does it mean we need to charge VAT to our customers even if we don’t ship DDP? ******************** Answers: Foreign exporters, exporting to the EU, do not need a VAT registration, if terms of sale is […]

  • 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 […]