Accounting Standards for De Minimis Importation (Exchange Rate & Time of Supply) and VAT Claims from the Counterparty
Machine translated
An import via de minimis clearance (list clearance) has occurred from overseas to Korea. There are no specific Incoterms agreed upon between the two companies; only the relevant invoice and waybill are available.
1. The dates required for accounting are the exchange rate application date and the time of supply (accounting date). Is it acceptable to apply the exchange rate based on the shipment date and the time of supply (accounting date) based on the invoice date? Furthermore, in such cases, what is the most reasonable standard for applying the exchange rate and the time of supply?
2. Regarding this transaction, the exporter (in China) has invoiced an amount that includes VAT (Value-Added Tax/Zhengqi tax) in addition to the cost of goods. I understand that VAT is similar to Korea's Value-Added Tax and that a 0% rate should apply to exports. Therefore, I believe it is incorrect for the counterparty to charge VAT. Since it is an export from their perspective and an import from ours, I would like to know if it is correct for them to charge VAT.
Answer 1
- 01. Generally, the exchange rate for import payments is the rate at the time of payment, and the exchange rate for import customs duties and VAT is the weekly announced rate from the Korea Customs Service; however, you must confirm specific details with your accountant or tax advisor. 2. Regarding matters related to Chinese VAT, we believe it is necessary to verify these details with the Chinese exporter.Machine translated
Write an answer
0
Comments 0