International trade and Customs

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If you trade internationally, cross-border commodity flows can have a tremendous impact on your VAT processes. This might involve importing materials, storing your stock or distributing your products to your sales locations. All of these activities involve VAT obligations, sometimes in several countries, depending on your business model. Have you considered how a Shared Service Centre model can impact your VAT processes?

Business models

Through globalization, commercial trends and new distribution markets, complex business models emerge. Within some models, business operations and functions are assigned to local offices, for example in an agent structure. A Shared Service Centre model means a centralisation of administrative and financial functions, including VAT compliance activities. All of this can result in a mix of supply of goods, whereby chain transactions with multiple buyers are more the rule than the exception. In such an environment, the optimisation and streamlining of your VAT processes is crucial. We will help you outline the VAT consequences of your goods movements.

Example:
Your organisation works with a European distribution centre in the Netherlands. Do you have a good overview of the import proces of your products and the VAT and Customs regulations? What are the advantages of a bonded warehouse? And what if your organisation decides to also sell to individuals from this distribution centre? These are questions that the VAT advisors of Baker Tilly can answer.

Customs

In international trade, in addition to VAT you may also be involved with other taxes, such as import duties and excise costs. Import duties are often seen as a necessary evil, but through proper planning, you can save a lot of money at Customs. If you fail to meet the complex Customs formalities, this often leads to delays in the flow of your goods. 
We help you apply Customs regulations and stipulations correctly and think along with you as to how you can simplify formal procedures and gain logistical advantages at Customs. We can also advise you on the consequences the new Customs legislation may have on your international trade.

How can I help you?

Want to know what we can do for you? Just contact Baker Tilly, with no obligation, of course.

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Jayant Rakhan Partner VAT Advisory T: +31 (0)6 12 02 41 49