Increasingly as the trade of goods becomes more global one of the more complicated areas a business is left to deal with is customs and VAT. Whether you are trading in the UK or Ireland the likelihood is you have looked further afield; China is increasingly popular due to improved quality of product and pricing. If you are sourcing outside of the EU you will have to deal with customs and you will have a VAT obligation at the point of entry of 20% to 23%, depending on jurisdiction. Ecovis have written an interesting piece about this and how Growcap Finance (now White Oak IE) can fund this obligation.
This scenario brings sharply into focus the current Brexit talks. Whatever your feelings about the subject, the issue of customs and VAT obligation at the point of entry into the UK from the EU remains outstanding. If this remains it will bring significant pressure on SME’s working capital. In this instance its best to prepare for the worst and hope for the best as the clock ticks down.
At White Oak IE our supply chain finance model can take away some of the pain. If you are already sourcing from outside EU and require to pay VAT at the point of entry, White Oak IE can fund it. At present we can fund the purchase price of the sourced product, the logistics, duty and VAT. Our supply chain/ trade finance solution also ensures that all product meets the standard your business requires before any product is paid for. This helps reduce sleepless nights and ensures you don’t have to take difficult recourse action if the product doesn’t meet the required quality.
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