Ending complexity of VAT treatment for customs and VAT warehousing and import reliefs
Tracking and accurately calculating VAT reliefs on inward processing imports, including reexports or releases into free circulation, is highly complex. Even the EU’s rules on customs procedures and VAT warehouses are varying across the 27 member states. VAT Calc single-platform tax engine and reporting has it cracked.
Where customs VAT procedures work
Import VAT and customs duties may be suspended in a number of situations under strict authorisations and controls of the tax authorities. Suspension rights are granted to companies and specialised warehouse operators, often with the requirement for a financial guarantee.
Examples of VAT relief include:
- Inward processing (repackaging, sorting, repairs, or full manufacturing prior to re-export or release into free circulation);
- Temporary imports (trade fairs etc);
- Temporary storage of goods that will be imported into free circulation, re-exported or placed under a customs procedure;
- Transit goods which will clear into free circulation in another country;
- Storage (customs or bonded warehousing and free zones) prior to clearance or reexport to another country; and
- Fiscal or VAT warehouses where prespecified goods may be traded VAT exempt even though they have already cleared into free circulation in the country. Goods include: metals; cereals; tea and coffee; and bulk chemicals.
Most countries permit import VAT exemptions on goods imported only for a short period. Customs duties may also be limited or avoided. This typically requires authorisation
VAT Calc – the only tax engine to handle customs and VAT warehousing reliefs out-of-the-box
VAT Calc’s single tax engine and VAT returns filing application are built on national, EU and global OECD guidance rules. This means the rules for complex transactions like supplies of goods in, intended for, or imported into a customs procedures or VAT warehousing are already included. There is no lengthy and expensive manual customs rules coding required.
Even if you have special arrangements or take varying interpretations on country-by-country rules, you can tweak the rules live via VAT Script, our no-code tax language.
VAT Calc covers the following transaction in for determination and VAT return reporting on a single platform:
- supplies (sales invoice) intended for a customs regime such as customs warehouse, free zone, temporary storage, external transit, inward processing
- supplies intended for VAT warehousing
- supplies in a customs or VAT warehouse
- import into VAT warehouse
- Intra-community acquisition into VAT warehouse
4 reasons VAT Calculator is the best tax engine in the market
| VAT Calc's tax engine - operating in days; saving you huge costs and risks on tax liabilities | |
| 1. VAT Calculator is the only global tax engine built on tax laws as opposed to custom rules | Instant implementations for any business! You won’t need expensive consultants spending months adapting it with their fiddly custom rules that require ongoing maintenance. We already have all the complexity of any use case ready-to-go out of the box: triangulation; 2021 EU ecommerce reforms; gig & sharing economy taxes; customs and warehouse exemptions and the rest of your wish list. In fact, a VAT Calc implementation is mostly just building to our API - days instead of months! |
| 2. Using VAT Script, you take complete, real-time control of the rules | Whilst our engine is built from the national tax laws up, you may have requirements that are nuanced to your business. No problem: with VAT Script, our proprietary tax programming interface, which you can be trained-up in minutes, allows you to adapt the assumptions to your business model or interpretation of tax rules. No need to call IT and ERP teams or pay for costly outside help for punishingly lengthy code change-cycles. |
| 3. So good, we built two | You may have already done the tax calculations on large batches of transactions, but you need it verified. Our VAT Auditor application will instantly verify the VAT / GST calculations of any size file, and return line-by-line errors and suggested changes. No complex or expensive integrations. You can make the amendments live in the system, and, if you wish, commit to our VAT Filer. |
| 4. It’s on the same single-platform as our VAT Filer returns service | Not convinced yet? This is the killer feature. Your calculations are immediately reported in the right return and box without any further connections, integrations, or fiddly reconciliations. That's hundreds of hours and thousands in consulting and software costs saved. VAT Calc is the only tax engine with calculations AND returns on the same application. |
