Understanding the importance of VAT and import duties can be crucial to the success of your international business. Failure to manage this aspect of your business correctly can have irreparable, even terminal financial consequences.
Companies and individuals pay VAT every day on their normal business activities. In addition to VAT, environmental and import duties are levied on the importation of goods into the European Union, driven in part by the increasing focus on sustainability and the environment. In order to protect these important revenue streams, national tax authorities and EU investigators are starting to conduct more frequent VAT and customs audits every year.
Apart from the US, most countries worldwide have a sales tax (VAT or GST) type system, and whilst there is much common ground in terms of the basic principles applying, it is vital that businesses trading cross border in goods and services are aware of the VAT treatment applying to their particular business and specific transactions.
With standard VAT rates typically averaging between 10% and 25% worldwide, engaging in transactions that do not comply from a VAT perspective can lead to a rapid rise in unrecoverable VAT, with higher costs significantly impacting on pricing within the supply chain. In addition, at a practical level, customers receiving non-compliant invoices from suppliers are likely to query the invoice, resulting in extra administrative costs and delays in payment.
As an independent VAT consultancy with international reach, we provide specialist VAT and customs duty advice to leading businesses and organisations of all sizes across a broad range of industries and disciplines.
Recognised for our depth of knowledge of this complex tax, we have proven expertise in helping clients reduce the impact of VAT, simplifying their procedures and avoiding penalties.
We also act as the preferred advisor for many professional firms and their clients, and our highly-qualified team and global network of specialists offer clients the best advice on all aspects of Dutch and European indirect taxes.