Can businesses offset customs duty against VAT payments?

Can businesses offset customs duty against VAT payments?
by

1 Answer

Answer :

Customs duty is levied at the time of importation of goods in a country. Import VAT is levied on goods after Custom clearance and hence VAT will be calculated on the value which already includes the customs duties paid by the importer.Besides, in most countries VAT and Customs are two different authorities with their own rules and regulations.Thus, VAT will be paid in addition to the customs duties of the goods, and it is not possible to offset one against other.We at Accountantsbox, support clients in assessing the impact of VAT on their business and comply with VAT law.
by

Related questions

Do you prefer it if prices are shown with or without VAT? Also do you think that businesses should be forced by law to post only VAT-included prices? (post your reasons)

Description : Do you prefer it if prices are shown with or without VAT? Also do you think that businesses should be forced by law to post only VAT-included prices? (post your reasons)

Last Answer : I can't address VAT specifically, but I do believe that the actual bottom line cost should always be included. Here, businesses are adding more and more fees without disclosing them. A motel room may be ... of 1%, and always a local bed tax which can be as high as 12%. It gets ridiculous.

Which of these would lead to decrease in quantity supplied at a given price (a) Decrease in VAT ; (b) Decrease in excise duty; (c) Decrease in import duty ; (d) Imposition of higher levies

Description : Which of these would lead to decrease in quantity supplied at a given price (a) Decrease in VAT ; (b) Decrease in excise duty; (c) Decrease in import duty ; (d) Imposition of higher levies

Last Answer :  (d) Imposition of higher levies

Which of these would lead to increase in quantity supplied at a given price (a) Increase in VAT ; (b) Increase in excise duty ; (c) Increase in import duty ; (d) Reduction in levies

Description : Which of these would lead to increase in quantity supplied at a given price (a) Increase in VAT ; (b) Increase in excise duty ; (c) Increase in import duty ; (d) Reduction in levies

Last Answer : (d) Reduction in levies

Has anyone purchased something worth $900 or more in Canada (or, for Canadians, in the US) and, if you did and had to bring it back over the border, how much did you have to pay for duty at Customs?

Description : Has anyone purchased something worth $900 or more in Canada (or, for Canadians, in the US) and, if you did and had to bring it back over the border, how much did you have to pay for duty at Customs?

Last Answer : Canadian duty guidelines. US duty guidelines.

When is "International Customs Duty Day" celebrated ? -General Knowledge

Description : When is "International Customs Duty Day" celebrated ? -General Knowledge

Last Answer : 6 January .

Among the tax revenues of the Union Government, the most important source is – (1) Income Tax (2) Customs Duty (3) Corporation Tax (4) Union Excise Duties

Description : Among the tax revenues of the Union Government, the most important source is – (1) Income Tax (2) Customs Duty (3) Corporation Tax (4) Union Excise Duties

Last Answer : (4) Union Excise Duties Explanation: Central excise revenue is the biggest single source of revenue for the Government of India. The Union Government tries to achieve different socio-economic objectives by ... adopted by entry 84 of List I of the seventh Schedule of the Constitution of India.

Which one of the following is NOT an example of indirect tax? (1) Sales tax (2) Excise duty (3) Customs duty (4) Expenditure tax

Description : Which one of the following is NOT an example of indirect tax? (1) Sales tax (2) Excise duty (3) Customs duty (4) Expenditure tax

Last Answer : (4) Expenditure tax Explanation: Expenditure tax is a taxation plan that replaces the income tax (a direct tax). Instead of applying a tax based on the income earned, tax is allocated based on the ... a consumption tax. The major benefit for this type of tax scheme is the removal of double taxation.

Which among the following is not a non-customs duty obstacle in the world trade? (1) Quantity restriction (2) Establishment of Standard of labour in manufacturing (3) Determination of import duty uniformly (4) Restrictions on goods quality

Description : Which among the following is not a non-customs duty obstacle in the world trade? (1) Quantity restriction (2) Establishment of Standard of labour in manufacturing (3) Determination of import duty uniformly (4) Restrictions on goods quality

Last Answer : (3) Determination of import duty uniformly Explanation: Non-tariff barriers to trade include import quotas, special licenses, unreasonable standards for the quality of goods, bureaucratic delays at customs, ... duty uniformly is comes under the sovereign duty of a nation. It is internal development.

The term 'Dumping' refers to - (1) The sale of a substandard commodity (2) Sale in a foreign market of a commodity at a price below marginal cost (3) Sale in a foreign market of a commodity just at marginal cost with too much of profit (4) Smuggling of goods without paying any customs duty

Description : The term 'Dumping' refers to - (1) The sale of a substandard commodity (2) Sale in a foreign market of a commodity at a price below marginal cost (3) Sale in a foreign market of a commodity just at marginal cost with too much of profit (4) Smuggling of goods without paying any customs duty

Last Answer : (2) Sale in a foreign market of a commodity at a price below marginal cost Explanation: Dumping is an international price discrimination in which an exporter firm sells a portion of its out-put in ... , incurring loss in the foreign market (International Economics by M. Maria. John Kennedy, p.122).

Which of the following taxes is not collected by the Central Government? (1) Income tax (2) Customs duty (3) Professional tax (4) Excise duty

Description : Which of the following taxes is not collected by the Central Government? (1) Income tax (2) Customs duty (3) Professional tax (4) Excise duty

Last Answer : (3) Professional tax Explanation: A professional tax, also known as an occupation tax or a professional privilege lax, is a tax that a professional must pay to receive the right to practice a ... and a professional who has clients in more than one state may owe professional taxes in several states.

If the addressee of inward foreign parcel is aggrieved on the customs duty imposed on the article, it a) Should be taken delivery by the addressee and referred to customs authorities b) Has no option except to take delivery or refuse to take delivery c) Can request for return of the article to the customs for reassessment d) None of these

Description : If the addressee of inward foreign parcel is aggrieved on the customs duty imposed on the article, it a) Should be taken delivery by the addressee and referred to customs authorities b) Has no option ... c) Can request for return of the article to the customs for reassessment d) None of these

Last Answer : c) Can request for return of the article to the customs for reassessment

It will be ensured that the aggregate value of all the VP articles including article including customs duty articles entrusted to an EDDA does not exceed Rs ______ a) 8000/- b) 5000/- c) 10000/- d) 20000/

Description : It will be ensured that the aggregate value of all the VP articles including article including customs duty articles entrusted to an EDDA does not exceed Rs ______ a) 8000/- b) 5000/- c) 10000/- d) 20000/

Last Answer : a) 8000/

Foreign post office giver a new serial number to any inward foreign parcel a) When subjected to customs and duty is assessed b) When subjected to customs immaterial of the fact whether duty is assessed or not c) When subjected to customs and if the parcel weight more than 10 Kg d) All of the above

Description : Foreign post office giver a new serial number to any inward foreign parcel a) When subjected to customs and duty is assessed b) When subjected to customs immaterial of the fact whether duty is assessed or not c) When subjected to customs and if the parcel weight more than 10 Kg d) All of the above

Last Answer : b) When subjected to customs immaterial of the fact whether duty is assessed or not

Mark correct options a) A post office or Sorting office or section which exchanges mails with offices in foreign countries is known as ‘Office of exchange”. b) A Foreign post office is an office of exchange in which the work of assessment of customs duty on foreign mail is also carried out. c) A Sub foreign Post office is does not close and receive any bags but in which the work of customs examination, assessment and accounting of custom duty is carried out. d) All the above

Description : Mark correct options a) A post office or Sorting office or section which exchanges mails with offices in foreign countries is known as Office of exchange . b) A Foreign post office is an office ... of customs examination, assessment and accounting of custom duty is carried out. d) All the above

Last Answer : d) All the above

When will a sender of outward foreign parcel get customs duty as refund from department? a. Parcel is returned as undeliverable b. Parcel is in a damaged condition c. Never refunded the customs duty

Description : When will a sender of outward foreign parcel get customs duty as refund from department? a. Parcel is returned as undeliverable b. Parcel is in a damaged condition c. Never refunded the customs duty

Last Answer : a. Parcel is returned as undeliverable

Which among the following is the exclusive jurisdiction of the state government? a. Corporation tax b. Customs duty c. Sales tax d. Income tax

Description : Which among the following is the exclusive jurisdiction of the state government? a. Corporation tax b. Customs duty c. Sales tax d. Income tax

Last Answer : c. Sales tax

The term ‘Dumping’ refers to (1) The sale of a sub-standard commodity (2) Sale in a foreign market of a commodity at a price below marginal cost (3) Sale in a foreign market of a commodity just at marginal cost with too much of profit (4) Smuggling of goods without paying any customs duty

Description : The term ‘Dumping’ refers to (1) The sale of a sub-standard commodity (2) Sale in a foreign market of a commodity at a price below marginal cost (3) Sale in a foreign market of a commodity just at marginal cost with too much of profit (4) Smuggling of goods without paying any customs duty

Last Answer : Sale in a foreign market of a commodity at a price below marginal cost

Which among the following is not a non-customs duty obstacle in the world trade ? (1) Quantity restriction (2) Establishment of Standard of labour in manufacturing (3) Determination of import duty uniformly (4) Restrictions on goods quality

Description : Which among the following is not a non-customs duty obstacle in the world trade ? (1) Quantity restriction (2) Establishment of Standard of labour in manufacturing (3) Determination of import duty uniformly (4) Restrictions on goods quality

Last Answer : Determination of import duty uniformly

Which of the following taxes is not collected by the Central Government ? (1) Income tax (2) Customs duty (3) Professional tax (4) Excise duty

Description : Which of the following taxes is not collected by the Central Government ? (1) Income tax (2) Customs duty (3) Professional tax (4) Excise duty

Last Answer : Professional tax 

Which one of the following is NOT an example of indirect tax? (1) Sales tax (2) Excise duty (3) Customs duty (4) Expenditure tax

Description : Which one of the following is NOT an example of indirect tax? (1) Sales tax (2) Excise duty (3) Customs duty (4) Expenditure tax

Last Answer : Expenditure tax

Committee on Comprehensive Financial Services for Small Businesses and Low Income Households, headed by ________ recommended the formation of a new category of bank called payments bank. A. NR Madhawan Menon B. Bimal Jalan C. Nachiket Mor D. Y.H. Melagam E. None of the Above

Description : Committee on Comprehensive Financial Services for Small Businesses and Low Income Households, headed by ________ recommended the formation of a new category of bank called payments bank. A. NR Madhawan Menon B. Bimal Jalan C. Nachiket Mor D. Y.H. Melagam E. None of the Above

Last Answer : C. Nachiket Mor Explanation: Committee on Comprehensive Financial Services for Small Businesses and Low Income Households, headed by Nachiket Mor recommended the formation of a new category of bank called payments bank.

Under a pegged exchange-rate system, which does not explain why a country would have a balance-of payments deficit? A. Very high rates of inflation occur domestically B. Foreigners discriminate against domestic products C. Technological advance is superior abroad D. The domestic currency is undervalued relative to other currencies

Description : Under a pegged exchange-rate system, which does not explain why a country would have a balance-of payments deficit? A. Very high rates of inflation occur domestically B. Foreigners ... . Technological advance is superior abroad D. The domestic currency is undervalued relative to other currencies

Last Answer : The domestic currency is undervalued relative to other currencies

Would you vegans-of-principle be alright eating vat-grown meat?

Description : Would you vegans-of-principle be alright eating vat-grown meat?

Last Answer : As a meat eater, I would be afraid of that!!!

Vat back on amazon marketplace goods?

Description : Vat back on amazon marketplace goods?

Last Answer : answer:Amazon UK has a page on the subject. The best thing to do would be to contact the seller. If they are VAT registered, then they should be able to issue you with a VAT receipt (in fact, I' ... to). If they're not VAT registered then you can't claim anything back, as VAT wasn't charged.

How do you know that you exist? Are you real or are you just a brain in a vat connected to a super computer?

Description : How do you know that you exist? Are you real or are you just a brain in a vat connected to a super computer?

Last Answer : I think it's far more likely that no part of me physically exists at all. Explanation time! For the universe to exist, it takes energy. A lot of energy. Infinite energy, in fact. However, for a ... while the likelihood of actually being in the real universe is small, I'm probably at the top level.

What can you do with a vat of cider vinegar?

Description : What can you do with a vat of cider vinegar?

Last Answer : Bottle it up and give it as Christmas gifts along with a few recipes tied with ribbon. I have a great fall red cabbage recipe with cider vinegar and bleu cheese if you want it. Also include a classic vinaigrette.

Under VAT, how many slabs are there? -General Knowledge

Description : Under VAT, how many slabs are there? -General Knowledge

Last Answer : The answer is '4'

What is the full form of 'VAT' ? -How To ?

Description : What is the full form of 'VAT' ? -How To ?

Last Answer : The full form of 'VAT' is Value Added Tax

Under VAT, how many slabs are there? -General Knowledge

Description : Under VAT, how many slabs are there? -General Knowledge

Last Answer : answer:

How much VAT do i pay when importing to israel?

Description : How much VAT do i pay when importing to israel?

Last Answer : Search unitmeasure vat calculator

What is VAT ?

Description : What is VAT ?

Last Answer : Add Value Added Tax. VAT levied on imported , exported , manufactured and supplied goods and services supplied and imported is called VAT.

How is VAT determined ?

Description : How is VAT determined ?

Last Answer : : The producer taxpayer will fix VAT on the sale of his finished goods at a fixed rate and will pay the net part of the value added tax to the authority after deducting the VAT on the raw material purchased from ... raw material = 15% of 1000 - 15% of 600 rupees = (150 - 105) rupees = 45 rupees .

What is the full form of VAT ?

Description : What is the full form of VAT ?

Last Answer : The full form of VAT is Value Added Tax.

What is the full form of VAT ?

Description : What is the full form of VAT ?

Last Answer : VAT full form Value Added Tax.

What is the meaning of the word Vat ?

Description : What is the meaning of the word Vat ?

Last Answer : The word Vat means toilet.

What is the VAT system of Bangladesh ?

Description : What is the VAT system of Bangladesh ?

Last Answer : Known as value added tax.

What is Vat ?

Description : What is Vat ?

Last Answer : VAT is the tax levied on a product or service or the tax that the government has to pay for a product if it wants to trade in the market with a product .

What is the full form of VAT ?

Last Answer : VAT - Value Added Tex ( add value)

What is VAT ?

Last Answer : VAT is the extra money we pay to the government for any product for the development of the country.

VAT Act 1991 What is the provision of new law regarding exemption of ATV or advance tax on import through VAT-6 ?

Last Answer : VAT-6 or any similar item does not exist under Value Added Tax and Supplementary Duty Act 2012 and Value Added Tax and Supplementary Duty Rules 2018. In other words, in the previous law, import was done ... case of all types of companies, 5% advance tax has to be paid at the time of import. ]

What is VAT ?

Description : What does VAT mean ?

Last Answer : The full form of VAT is Value added Tax, which in Bengali means Value Added Tax (VAT). The taxpayer, after fixing the value added tax on his total sales at a specified rate of one percent, ... the raw material purchased from him and pays a small deduction to the tax authorities. This is called VAT.

What is the full form of VAT ?

Last Answer : Add value

What is the new VAT sector in the budget ?

Last Answer : Money earned by information technology. Such as earning through YouTube channels.

What is the full form of VAT ?

Last Answer : Value Added Tex ( add value)

In what year is VAT introduced in Bangladesh ?

Last Answer : VAT was introduced in Bangladesh in 1991 .

in Bangladesh VAT When And How much? On On Is it

Last Answer : in Bangladesh VAT On Is July 1 In 1991.

VAT Day When ?

Last Answer : 10 December National VAT Day.

in Bangladesh The first When VAT _ On Is it

Description : in Bangladesh The first When VAT _ On Is it

Last Answer : in Bangladesh The first VAT 1991 _ In On Is.

How to calculate VAT?

Description : How do I calculate VAT on something?

Last Answer : It's very simple. If you know the gross price of the price, including VAT, you have to divide the amount by 0.27. This is how you get the net value of the price. If you're curious about ... value is 100, then 100x1.27 = 127 of course the difference between the gross and net value is VAT.