Cross-border e-commerce (E-commerce) has expanded worldwide with Amazon, eBay, Shopify, and Corona Vortex, and is now the focus of attention for all companies. Cross-border e-commerce is often introduced as a good thing, with sales starting within minutes of creating a site and new sales opportunities from markets around the world. On the other hand, local taxes and various other costs are not shared much: local taxes such as VAT are levied and collected by the seller on the local buyer, but even in the case of cross-border e-commerce, there are cases of taxation, collection, and reporting.
Tax accountants, lawyers, and various other domestic professionals do not necessarily have knowledge of overseas tax and legal affairs.
IN THIS COLUMN, OPTI CORPORATION, WHICH HAS EXTENSIVE EXPERIENCE IN THE TAX ASPECTS OF CROSS-BORDER EC, PROVIDES A "CROSS-BORDER EC TAX NAVIGATOR" IN A Q&A FORMAT.
WE HOPE THAT OUR EC TAX NAVIGATOR WILL BE OF HELP TO VARIOUS COMPANIES CONSIDERING CROSS-BORDER EC.
Q] What is Intrastat?
A] Int rastat (or Intrastat) is a statistical declaration of the movement of goods and services within the EU. Intrastat is not a tax declaration, but a report required to statistically track the movement of goods between member states within the EU. It can be thought of as a kind of trade statistics. Intrastat declarations are statistical declarations, not tax declarations. However, failure to report intrastat declarations or errors in reporting can result in fines, so compliance is required.
EACH EU MEMBER STATE IS OBLIGED TO CREATE A SEPARATE INTRASTAT.
Intrastat declarations require a wide range of very detailed data, including the date of shipment/arrival, weight, unit price, details of the underlying transaction, means of transport, etc., for both incoming and outgoing shipments to each member country, and in most cases require the assistance of a shipping company for data collection.
See also here for more information.
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