Value-Added Tax (VAT)

While the United States doesn’t use a value-added tax on goods, the vast majority of other countries do. If you plan to do business or source products internationally, it’s important to account for VAT rules in your production and sales planning. Unfortunately, these rules can become fairly complex, which is where the legal expertise of Hart David Carson comes in.

Our attorneys have decades of experience in business and tax planning, and we can help you handle the issues presented through value-added taxes.

Challenges of International Businesses

One of the greatest challenges to international businesses is the fact that different nations will interpret VAT a little differently. Theoretically, it is levied based on the amount of value added at each stage of production, but the way it works out will vary from country to country. At the very least, each nation has it’s own rate for VATs, so if you plan to work within multiple jurisdictions, it’s important to take each location’s set of laws into consideration.

Due to minor differences in the ways each nation will handle VAT, there is no one-size-fits-all solution for international business planning. The challenge comes in managing costs as efficiently as possible while also maintaining careful records and bookkeeping protocols. Awareness of how each nation’s tax laws will impact supply chain, production, and other matters will help you keep overhead costs down and increase business efficiency.

Efficient Supply Chain Planning

Part of making sure your international business dealings are handled efficiently is managing your supply chain. Making decisions about where to source materials, where and how to produce products, and how retailing should be handled are all key to streamlining costs.

Another matter to take into consideration is time. Timely delivery of VAT returns, processes for managing bookkeeping, and other matters are all important to maintaining efficiency and avoiding compliance issues. Hart David Carson can advise you on the legal implications of your supply chain and production planning and help you keep tax burdens to a minimum.

Foreign Sales and VAT Compliance

When selling products overseas, there are certain measures you’ll need to take in order to ensure compliance with VAT rules. Typically, you’ll be required to register for VAT in the country where you intend to do business, charge the correct amounts on your products, make VAT payments on time, and keep proper records.

You may also need a representative in the nation where you intend to operate, format invoices and other documents a certain way, incorporate in that country, and comply with a multitude of other requirements.

Failure to comply with the rules set forth could result in massive liabilities and penalties, so it’s important to plan ahead with the assistance of a tax law advisor.

VAT Planning

Doing business overseas will involve a great deal of tax planning, both in terms of handling the VAT as well as stateside laws. 

International business expertise will help you navigate the processes involved in selling overseas, so contact Hart David Carson for the legal advising you need.