IOR and the deferral system

Updated on
IOR and the deferral system

The high import value-added tax (VAT) that occurs when exporting to Europe FBA can be quite a burden to sellers. 

And in fact, this problem is a huge headache for European customs, which handles tens of thousands of tons of cargo every day. In particular, since the system changed from 2022, when deemed suppliers, that is, marketplaces, collect value-added tax on B2C sales at the source, most sellers will only be eligible for refunds, so it is not easy for the tax office to check and refund each of these.

In order to manage these types of things efficiently, the UK has already established a system called PVA, which allows VAT payment to be deferred if accounting is done properly at the time of import customs clearance. 

This has helped many sellers improve their cash flow and boosted sales. 

What about other countries?

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