- Businesses must consider tax compliance when selling across borders, including VAT, GST, and import/export duties.
- Incoterms define responsibilities for freight, insurance, customs, and duties in international trade.
- Incoterms impact when and where a taxable supply occurs and VAT registration requirements.
- Incoterms specify delivery location, transport arrangements, insurance responsibilities, customs procedures, and duty payments.
- Incoterms are published by the International Chamber of Commerce and define buyer and seller responsibilities in cross-border trade.
- Incoterms do not cover sale price or payment terms.
- Modes of transport Incoterms apply based on transport type, such as air, road, rail, or sea.
- EXW: Buyer collects goods from seller’s premises and handles all responsibilities.
- FCA: Seller delivers goods to a named destination; buyer assumes risk and responsibility after handover.
- CIP: Seller pays for transport and insurance to a destination; risk transfers to buyer at first carrier.
- CPT: Similar to CIP, but seller does not cover insurance.
Source: avalara.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
