Why Tax Advice Matters for Foreign Economic Activity

Export and import transactions are governed by both national and international rules. Failure to comply with tax requirements can lead to substantial penalties, goods being held at customs or restrictions affecting financial operations.

Common challenges for businesses include:

• correct VAT calculation, including application of the zero VAT rate to exports and determination of VAT recovery on import transactions;

• application of the zero VAT rate to exports;

• determination of the amount of VAT recovery on import transactions;

• customs clearance, including calculation of customs duties and excise taxes and preparation of documents for the customs declaration;

• calculation of customs duties and excise taxes;

• preparation of documents for the customs declaration;

• application of international agreements, including double taxation treaties and adaptation to the Multilateral Instrument (MLI);

• use of double taxation treaties;

• adaptation to the requirements of the Multilateral Instrument (MLI);

• audit risks, including tax authority control over pricing through transfer pricing rules and incorrect tax declarations;

• tax authority control over pricing and transfer pricing;

• incorrect tax declarations;

• VAT and customs-payment advice, including analysis of business activities, determination of tax liabilities, preparation of export and import declarations and optimisation of customs-duty and VAT costs;

• analysis of business activities and determination of tax liabilities;

• preparation of export and import declarations;

• optimisation of customs-duty and VAT costs;

• transfer pricing (TP) advice, including analysis of transactions with foreign counterparties, preparation of TP reports for the tax authorities and recommendations for reducing tax risks;

• preparation of transfer-pricing reports for the tax authorities;

• recommendations for reducing tax risks;

• support in matters involving customs authorities, including protection of the client's interests in customs disputes, complaints and appeals against unjustified delays of goods and support during tax audits;

• protection of the client's interests in disputes with customs authorities;

• preparation of complaints and appeals where goods are delayed without sufficient grounds;

• support during tax audits;

• adaptation to international rules, including explanation of international conventions and use of double taxation treaties to manage the tax burden;

• explanation of provisions of international conventions;

• use of double taxation treaties to reduce the tax burden;

• specialist knowledge of national and international tax rules;

• cost control through prevention of avoidable errors;

• support throughout the process, from transaction analysis to representation before public authorities;

• confidential handling of commercial information.

Export and import tax planning gives a business a clearer basis for pricing, customs clearance and cross-border payments before a transaction is implemented. Proper preparation allows international trade to develop without tax administration becoming an avoidable operational obstacle.