May 29, 2017

VARs, Give Your Clients a Tax Break

Over 90% of the cost of shipping equipment can consist of taxes. If you’re not a local tax resident, import VAT can extend to 25% of the goods’ commercial value. This is usually written off as a cost of doing business, but it needn’t be.
Many VARs know only too well the complexities and challenges of shipping ‘dual-use goods’ (which are heavily regulated) into data centres (DCs) like Equinix, Interxion, Global Switch, Telecity or Level 3, on behalf of their clients.

The main issue is that data centres tend not to engage with the import process for risk mitigation reasons. Thus VARs need import partners who can:

• serve as an Importer of Record (IoR),
• apply for the relevant permits and licences,
• pay over the duty and tax amounts, and
• ensure a fully compliant import.

Furthermore, the shipping destination is not always dictated by where the VAR or their client has a local presence. The equipment must be shipped into data centres at strategic points around the globe, in order to achieve the desired IT infrastructure. So selecting an experienced global partner is critical.

Remember, too, that at the end of this extremely complicated process, the import taxes are usually written off. But this needn’t be the case.

What if you could get these taxes back? This is why it makes sense to source your IOR services from companies that offer import tax recovery because – beyond avoiding customs delays – you can also recover your tax.

TecEx is one partner for VARs who are looking to achieve expansion by delivering globally, because it offers 100% import tax recovery in over 40 countries.

TecEx is also able to recover the sales taxes included in co-location costs, and to go back up to five years, to recover taxes in certain jurisdictions.

If you want global reach while saving your clients money –
Enquire now to see how we can grow your business!

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THE PROCESS IS THIS:

  1. TecEx acts as the Importer of Record.
  2. TecEx applies for the necessary import licenses and ensures that all documentation is accurate before shipping.
  3. Once the shipment clears and delivers, the tax recovery process begins.
  4. TecEx applies to the relevant tax authority for an import tax refund.
  5. TecEx responds to any legal queries and issues that may be raised by the tax authority in relation to the refund claim.
  6. TecEx charges a success-based fee: no refund, no fee!

Yes, the process is highly technical. Yes, there are many forms, documents and hoops to jump through. But TecEx’s hands-on, professional team is known for guiding clients – over 8000 of them so far – every step of the way.

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