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VAT Deferment

VAT deferment upon importation is another aspect that your business needs to deal with when engaging in importing activities with EU member states. VAT deferment basically means that there is going to be a temporary postponement of your paying of VAT on imports. Even though there are the general EU mandated VAT procedures, each member state then has some leeway in how to implement them. VAT deferment is one of these areas. When importation of goods take place, the duties and the VAT are due on them, according to the laws in that particular country. However, with VAT deferment, the import VAT will be tackled a bit more leniently in some countries. This is because with the appropriate deferment account, import VAT that is due may be postponed a bit, and this may help importers handle payments and their dues in a more flexible manner. For someone who is not that conversant with the rules and taxation matters, VAT deferment tends to look somewhat complicated. It is a known fact that when a non-resident company imports goods into some EU countries, it does not only have to be VAT registered, but it also needs to pay the import VAT and duties on import. But with VAT deferment, there is the possibility to handle these differently. VAT deferment aims to offer a more cash-flow friendly alternative to businesses, especially those who are regular importers. The importer can basically defer the VAT and the duties to be paid later on, such as in the following month. A bank guarantee is generally required if this is not something that is done regularly, but for regular importers this can be like a scheme, and so the bank guarantee can even be avoided. These matters are best handled by a fiscal representative who will be an expert in such a field. VACUE can assist you in availing of the services of an experienced fiscal representative in the country that you deal with. Contact VACUE to request more information and to be assisted efficiently by a qualified fiscal representative.

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