This customs clearance method solves the problem of tight capital chain for cross-border sellers, and is also more conducive to the turnover of funds of sellers. This is VAT deferred customs clearance, if there are still people who do not know, let the 18 supply chain with independent customs clearance lines overseas popularize it for everyone.
Deferral refers to a policy in which a taxpayer pays taxes after receiving an income. Tax deferral for individuals means huge tax benefits, also known as deferral or tax payment.
VAT deferral, also known as fiscal clearance, refers to the fact that when goods enter the EU declaring country, when the destination country of the goods is other EU member states, the VAT deferral method can be selected, that is, the seller does not have to pay import VAT when importing the goods, but through the tax deferral to the final delivery country.
For example, if the seller's goods are cleared from Belgium, through tax deferral declaration, the goods are finally shipped to other EU countries, such as Germany, France and other EU countries. Businesses only need to pay customs duties in Belgium and do not need to pay VAT for imports.
VAT deferral is legal and compliant, it provides space for enterprises to circulate funds, so it is the preferred solution for many sellers. When goods are imported into EU countries, the import VAT is levied at the rate of the importing local country, and the logistics company responsible for customs clearance pays this part of the VAT when the goods are imported. Import VAT can be fully recovered by the importing company that pays this import VAT. However, a refund of import VAT can only be applied for after the goods have been sold. Import VAT takes a certain amount of time from payment to refund, and this delay will bring cash flow pressure to importers, especially in the case of high value of imported goods, so import VAT will affect the cash flow and import costs of cross-border enterprises to a certain extent.
The core of tax deferred compliance is whether the customer pays vat for sales in the destination country, and if this cannot be guaranteed, then the declaration of compliance will lead to non-compliance. This is also the reason why many freight forwarders/logistics companies claim that they cannot do deferral in Europe. In terms of taxation, the declaration is inconsistent with the actual import data, so there will be a risk of tax evasion and tax evasion, and if the seller's previous tax is found to be problematic after investigation, the tax agent will also bear this part of the joint and several risk liability.
General information required for VAT deferral (take the information required for VAT deferred air transportation in the 18 supply chain as an example reference)
1. VAT number, EORI number (offshore EORI and VAT can be cleared, but VAT of UK and Hong Kong registered companies cannot)
2. VAT English registered address, VAT English registered company name (not necessarily the EU address, if the VAT registered address is Chinese, as long as it is in English. ）
3. VAT registered company legal identity card or passport, VAT registered company business license (ID card and business license are to determine the authenticity of the tax number)
The mission and vision of the supply chain is to make domestic goods more dignified and cross-border simpler, so helping cross-border e-commerce sellers to import and export goods legally and compliantly starts from every little knowledge that everyone understands cross-border logistics.
This article is provided by 18 Supply Chain, any questions and suggestions can be through the official account "18 Supply Chain Cross-border Logistics" and our feedback.