Incoterms®
Incoterms® are frequently used in cross-border sales contracts. The Incoterms® issued by the ICC (International Chamber of Commerce) are known to be recognized worldwide. As uniform contractual and delivery conditions that enable the parties to a sales contract to process the transaction in a simple and standardized manner, they are readily used by the purchasing or sales departments of internationally operating companies.
Cost allocation, risk distribution, risk assumption and the duties of care, etc. are to be agreed with clarity and legal certainty for both parties with the use of Incoterms®. Therefore, clauses such as EXW, FCA, FAS, FOB, CFR, CIF, CPT, CIP, DAP, DPU and DDP are known worldwide. Incoterms® alone do not determine the customs and VAT outcome. In their agreement and application, they nevertheless have a considerable influence on the handling of facts, such as transport responsibility or export responsibility under customs law. Therefore, Incoterms® should be selected carefully and with knowledge of the customs and VAT implications. Inconsiderate use of Incoterms® can have negative consequences in customs and VAT, such as an undesired obligation to release goods for free circulation under customs and tax law (import) or incorrectly assigned transport assignment in cross-border goods traffic with effects on places of delivery and tax exemptions or problems with the input tax deduction of import VAT (EUSt). INDICET Partners assists with the appropriate selection, application and advises on the consequences of use in customs and VAT law. Therefore, it is good to have the team of INDICET Partners as a reliable partner.
Our services (extract)
- Consulting on Incoterms®
- In-house training
- Legal opinions, expert reports and workshops on the effects of the Incoterms® choice in VAT and customs law