Hi together,

We are an worldwide operating importer / exporter for consumer goods.

Originally from germany we want to expand our buisiness now in the USA and start distributing our
Products here in the US after importing them from Europe

Our Business in Europe is very settled and we know all the import procederes there.
For example if we import any Goods from USA we never pay any VAT, because our company
has a special VAT number which allows To import without pysically paying the VAT to the Tax Autorithis.

è The current VAT of 19% saves us a lot of money on the imports.
Even though we would reclaim it back from the TAX autorithis we save paying upfront 19.000 USD (in case of 100.000 USD invoice value)

My question Is if there is a oppurtunity like that with the I.R.S in the USA as well for Importing companies with a high
Frequent import volume?

If this is not possible in the USA, how long does it normally take to claim the VAT back?


i know this question is very advanced, but maybe somebody here has an idea about it.

There is no VAT in the US. 45 of the 50 states have their own Sales Tax where the seller collects the tax from the final purchaser. There is no national sales or use tax of any kind.

__________________
Trusted, Dependable Dropshipper

A Number of TWF Members Host With Me, You Should Also! Find out why....

hi pete,

do i understand you in the right way? if a us firm imports goods from abroad for example candles worth 100000 usd, they dont have to prepay any VAT?
so who claims then the sales tax?

importer - no tax
sells to
wholesales - no tax?
sells to
retailer - no tax?
sells to
final customer - with tax?

in europe its normally like that (at least if the sales is within the same country)

importer - prepais tax(in that case VAT)
sells to
wholesaler - with tax (importer claims tax back)
sells to
rtails with tax- (wholesaler claims tax back)
sells to
final customer (gives the tax to the tax autorithis)

Originally Posted by federa

importer - no tax
sells to
wholesales - no tax?
sells to
retailer - no tax?
sells to
final customer - with tax?

Correct, then the retailer collects the tax and send it to the state.

5 states have no sales tax, so the final customer does not pay any tax on goods or services.

Rates and exemptions vary from state to state.

__________________
Trusted, Dependable Dropshipper

A Number of TWF Members Host With Me, You Should Also! Find out why....

hi pete,

this is fantastic. there is no tax to pre pay by the importer except some duty (in case of there is duty on the imported product)

you really made my day.

There are Duty and Tax to pay in the US, but not VAT as you know it...

Technically, other than above comments on state Sales Taxes, they aren't called "tax", one of which is called Merchandise Processing Fees, charged by US Customs.

Called the MPF or "Ad Valorem Fee" it typically comes out to 0.21 percent of the goods value with a minimum of $25 or maximum of $485.

Per the US Customs Service:

"...merchandise that is formally entered or released is subject to the payment of Customs of an ad valorem fee of 0.21 percent. The fee shall be due and payable to Customs by the importer of record at the time of presentation of the entry summary and shall be based on the value of the merchandise as determined under 19 u.S.C. 1401a..."

Also, for ocean imports, there is a Harbor Maintenence Fee of 0.125 percent of the value of the goods.

Per the US Customs Service:

"Commercial cargo loaded on or unloaded from a commercial vessel is subjkect to a port use fee of 0.125 percent (.00125) of its value if the loading or unloading occurs at a port within definition of this section, unless exempt under paragraph (c) of this section or one of the special rules in paragraph (d) of this section is applicable."

While they aren't "taxes" by name, they are US Government agency-mandated fees...