Indirect Tax

 

Businesses trading internationally inevitably come up against a complex array of foreign indirect taxes. Depending on the nature of the goods or services they supply and depending on the countries in which they trade, these can include value added tax (VAT), goods and services tax (GST), sales taxes, customs duties and excise duties.

Indirect taxes are generally a cost for the consumer to bear. The burden of administering them however usually falls on the supplier, and for the business which gets it wrong, an unforgiving battery of stiff financial penalties lies in wait.

Baker Tilly International member firms' tax specialists guide multinational clients through the complexity of the world's indirect tax systems. The following are some of the areas in which they can provide valuable support:

  • Information about the indirect taxes in force in more than 100 countries worldwide. Advice on business structures that mitigate the effects of indirect taxes and give a competitive advantage
  • Registration of businesses for indirect tax purposes where this is legally required or where it is voluntary but will nevertheless produce financial benefits
  • Preparation of periodic returns. In some countries' indirect tax systems the filing of returns can produce refunds of the indirect taxes which the business has itself incurred
  • Acting as a fiscal representative for businesses. Some countries insist that foreign businesses make such an appointment as a precondition for their being allowed to trade in the country
  • Negotiations with national indirect tax authorities and the resolution of disputes.