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Where Taxpayers and Advisers Meet

International Tax Implications

vic1975
Posts:1
Joined:Thu Dec 11, 2014 11:56 am
International Tax Implications

Postby vic1975 » Thu Dec 11, 2014 12:22 pm

Hello

Before asking questions, I would like to explain the background-

Our company is based in the Middle East and it is a tax-free regime- so no business tax, no VAT or income taxes. We are dealing with a manufacturer based in Germany. From the total kit that we are buying from this manufacturer, 60% of their product is actually made in Germany while some other parts are imported by this manufacturer from European countries. So we buy full kit from this manufacturer in Germany and we sell it in the local market (Middle East). But this time, we have found a customer based in Germany itself. Our manufacturer is not aware of this end user though our customer knows that the manufacturer is based in Germany. Please note that our client is a government entity in Germany. I will appreciate assistance from experts on this forum to understand the tax implication on this transaction-

- As our company is not based in Germany, are we (company in the Middle East) liable for any VAT collection or payments?
- While preparing the quotation for this transaction, do we need to consider any other taxes, e.g. VAT, import duties etc if the INCOTERMS are FOB Middle East port?
- If the item is partially manufactured in Germany,what are the tax implications on our supplier in Germany in terms of VAT or corporate taxes?
- If the item is partially manufactured in Germany and the end client is also a government entity in Germany, will there be any tax / duty exemptions that can be availed by the manufacturer?

Thanks in advance

Vic

GlobalTaxAdviser
Posts:633
Joined:Fri Dec 05, 2014 1:18 am

Re: International Tax Implications

Postby GlobalTaxAdviser » Thu Dec 11, 2014 2:15 pm

This is a UK website and you would be better off finding a similar German website


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