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Posted

I have had a small export business for the past 10 years here. Registered, work permit, etc. The bulk of my shipments are sent via registered airmail, but some larger and more valuable shipments are sent via TNT, UPS, etc. That has all worked fine until recently, when the tax people informed me that in order to avoid paying VAT on the shipments sent via mail I need to obtain a form from customs showing that the items were shipped overseas. When I ship via air courier that is not a problem because I can obtain that form from them. The problem with the mail is that it apparently requires applying and paying for this form each time an item is mailed, and the cost of doing that for each item would not be worth it. To make things even worse, VAT is calculated on not only the price of the item, but also the cost of shipping, so it is a real double whammy to pay VAT for items that really don't fall under VAT provisions since they are exported. I have asked the tax people why the postal receipt is not enough to establish that the items were sent overseas and thus exempt from VAT, but they say that the law requires the paperwork from customs. Now obviously one solution would to no longer report these shipments, but I would prefer to remain within the law to the extent possible. So here are my questions:

1. Has anyone else here run into this issue?

2. How do you deal with it? Any legal solution?

I will greatly appreciate any comments from anyone who might be able to provide any assistance! Thanks in advance.

Posted

This issue was raised here last month:

See this topic

Looks like nobody replied though.

For small shipments just make sure the money from your customers does not come in through your company account! Make it all private!

opalhort

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