It’s difficult and time-consuming to stay up-to-date with the importing and tax rules and regulations of every nation in which you do business (or would like to). Many companies get unexpectedly caught unawares because tax and compliance paperwork isn’t properly completed or perhaps even considered. Clients become frustrated and may even feel punished by these extra expenses. This is not a scenario likely to lead to repeat business.
Take Value-Added Taxes (VATs), for example. This is a tax paid on goods being imported from another country in the European Union (similar to customs duty in other countries). A client can register for VAT and get a slightly lower rate, but if they don’t, they’ll be charged the local rate of the supplier’s country. No one wants to dig through the complexities and intricacies of foreign tax rules in every country into which they want to grow their business. VAT rules alone are a headache, let alone other associated taxes you could get stuck paying (GST, JCT, or HST).
Importing electronics is already a hassle with the fear of your goods getting stuck at customs. IT equipment is intensely regulated and requires highly detailed import permits, and, in many countries, a local Importer of Record is needed. These delays are costly for everyone, in the end. If your client’s goods get stuck at the border, and they also get dinged with unanticipated taxes and fees on top of the delays, you’re in trouble!
Luckily you can partner with a single IOR service that will expertly handle all of the above as a one-stop shop. A stellar example is TecEx, who has a presence in over 160 countries as an IOR, and who offers fully outsourced tax recovery services in 40 countries. If you incur indirect taxes in foreign countries, like import VAT, customs taxes, co-location taxes, and taxes on the local purchase of equipment, they can help. TecEx specializes in tech companies, so you can get a foreign tax refund if you’re a value-added reseller, distributor, manufacturer, IT solution provider, cloud-service provider, networking security firm, or work in the data center space.
Are you entitled to a refund?
On TecEx’s site, they offer upfront, useful information to help figure out if you’re entitled. If your answer is ‘yes’ to any of the following questions, you’re due a refund:
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- Do you ship equipment overseas to an import VAT refund country where you retain ownership of the equipment?
- Do you store equipment in foreign data centres located in a refund country?
- Do employees of your company travel or participate in trade shows in a refund country?
- Do you purchase equipment in a refund country?
(A table of applicable countries is also available on their site, so be sure to contact them to get details about your particular situation.)
It’s important to partner with an IOR service that has a long history of this type of work and that has a knowledge base and record of experience in many countries. Working with a partner that also offers tax recovery services means you’ll save even more money.
