How to export to Germany using our Order Fulfillment service to avoid paying VAT.

Con­grat­u­la­tions on your new Ger­man client! Import­ing into the Euro­pean Union (EU) is a great oppor­tu­ni­ty. The Euro­pean Mar­ket grows each year and promis­es a safe and sta­ble base for ongo­ing future expan­sion and sales. The Ger­man econ­o­my, as the world’s third largest indus­tri­al pow­er, rep­re­sents a great mar­ket for indus­tri­al B2B suppliers.

If you’re based out­side of the EU then you’re prob­a­bly ask­ing your­self a few legal and logis­tics ques­tions. What do you need to do before you can import your prod­ucts through the Euro­pean mar­ket and into Ger­many? Well here’s some good news. CAPLINQ’s Order Ful­fill­ment Ser­vices allows you to ship direct­ly to your Ger­man clients. This also saves you the trou­ble of set­ting up your own legal Euro­pean enti­ty as well as the costs of using Ger­man agents or distributors.

CAPLINQ is your mar­ket part­ner for the EU mar­ket; help­ing for­eign sup­pli­ers serve Euro­pean Customers.

The Port of Rotterdam: Europe’s front door!

Based in the Nether­lands, as part of our order ful­fill­ment ser­vices, we import and ware­house for our for­eign clients in Rot­ter­dam. The Port of Rot­ter­dam offers short­er over-land dis­tances to Frank­furt, Munich, Augs­burg, and Stuttgart than any Ger­man port. These are some of Germany’s most impor­tant indus­tri­al cities. Rot­ter­dam also beats the Ger­man ports of Ham­burg and Bre­men-Bre­mer­haven in size to be the largest port in Europe, and the third largest port in the entire World!

VAT is a pain in the… Cash Flow!

Using CAPLINQ’s Order Ful­fill­ment ser­vices to import into Europe through the Nether­lands offers anoth­er unique and crit­i­cal finan­cial advan­tage: Fis­cal Rep­re­sen­ta­tion for a Dutch Arti­cle 23 license.

Even though Val­ue Added Tax, or VAT, is nor­mal­ly refund­ed to com­pa­nies that incur it, depend­ing on which EU mem­ber state is involved, it can take months or even more than a year before the mon­ey is actu­al­ly returned. This means that most for­eign com­pa­nies have to pre-pay import VAT before they can reclaim it through a VAT return or via a Refund Appli­ca­tion. Need­less to say, this has a major neg­a­tive impact on the cash flow of a com­pa­ny – and that’s along­side the unfor­tu­nate loss or cost of poten­tial inter­est on that money.


Dutch Article 23: VAT deferral license!

The Dutch Gov­ern­ment has passed a unique piece of leg­is­la­tion called the “Dutch arti­cle 23 VAT defer­ral license”. This license allows Dutch fis­cal rep­re­sen­ta­tives of for­eign com­pa­nies to defer pay­ment of import VAT until the moment of fil­ing the VAT return. So instead of hav­ing to pre-finance the import VAT and pay it at the bor­der and wait months for a refund, with CAPLINQ as your fis­cal rep­re­sen­ta­tive, you sim­ply no longer have to pay VAT. No more wait­ing for your mon­ey to come back no more fill­ing in VAT Returns or Refund appli­ca­tions, and, most impor­tant­ly, you don’t pay VAT!

VAT deferral: Germany doesn’t have it!

This oppor­tu­ni­ty for this kind of post­poned account­ing is unique to the Nether­lands. Ger­many doesn’t have it or any­thing like it! CAPLINQ offers our fis­cal rep­re­sen­ta­tion ser­vice as stan­dard as part of our Order Ful­fill­ment Ser­vices. We apply for the Arti­cle 23 VAT defer­ral license on your behalf so that you can enjoy the huge fis­cal advan­tages of the deferred VAT, and no longer have pay for VAT or wait for it to be refunded.

The Arti­cle 23 defer­ral license per­mits you to import your goods and only pay duty against the cost-of-goods (COGS) sold: the man­u­fac­tur­ing cost, rather than the sales price. This means that your Ger­man clients won’t have to pay VAT either: lev­el­ing the play­ing field so that you can direct­ly com­pete with domes­tic Ger­man com­peti­tors who do have to pay VAT.

In con­clu­sion, export­ing to Ger­many through Rot­ter­dam with our Order Ful­fill­ment Ser­vice for Ger­many is the only smart option. To learn more about Arti­cle 23 and CAPLIN­Q’s Fis­cal rep­re­sen­ta­tion ser­vices or our Order Ful­fill­ment prices vis­it Alter­na­tive­ly, you can also con­tact us if you have any ques­tions regard­ing fis­cal rep­re­sen­ta­tion or order fulfillment.

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