- May 3, 2024
- Posted by: legaleseblogger
- Category: Related News
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**Reselling Expensive Machinery from China: Exploring Business Expansion Opportunities in Germany**
As a reseller of high-end machinery imported from China, I have been contemplating the idea of expanding my business operations to Germany. I have recently come across companies that offer specialized services in setting up businesses in Germany for non-residents, providing everything from banking services to a physical address. This option seems enticing, but I am concerned about the legal implications of such a move.
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****** just grabbed a
Dropshipping merchant
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We already have enough dropshippers selling chinese sheiße everywhere.
Before I retired I have been involved in setting up something like this for Taiwanese computer companies in the Netherlands. Because Germany as well as the Netherlands are in the EU there are hardly any differences between these countries.
You will need to set up a company, request ID nrs for company tax and VAT regulations. Because your goods are expensive you should look into either setting up or using a bonded warehouse. In such a warehouse your imported goods are physically inside the EU, but you do not need to pay import duty and VAT when your goods arrive. When a machine is sold you can have it custom cleared, duties and VAT paid.
When you would export to UK, which is now non-EU, you would need not to pay EU import duty, nor VAT because UK companies do not pay EU duty nor EU VAT. But you need to use a reliable trucking company that can either proof by paper or electronically that the goods have left the EU. If you cannot proof that it will be collected from you!
The Netherlands, with Rotterdam as one of the largest harbors in Europe, is one of the major logistic hubs in Europe. Fiscal and custom authorities have invested heavily in ICT portals which can be accessed in English. Even when your container has not arrived yet in Rotterdam, Dutch customs will let you know beforehand, whether they want to inspect on unloading in your warehouse. Registration of a limited company can be done within a couple of weeks. In NL you also can get a dispensation of having to pay VAT on import. The so-called Article 23 regulation allows you to declare the VAT payable as well as refundable on the same form. That way your company does not have to pay anything.
There are also specialized logistic companies offering fiscal representation that will handle all this paperwork and accounting for you. If comes at a price but will allow you to do what your are good at, selling and taking care of your customers.
The Netherlands are less bureaucratic than Germany. The slogan of the Dutch Tax office about paying taxes: “We cannot make it more enjoyable, but we can make it easier and less troublesome”
Contact the Trade division of the Dutch as well as the German embassy in Portugal and judge for yourself……
If you’re at the point that you’re needing to create a subsidiary in another country you shouldn’t be asking reddit for help. You should have a lawyer, account etc for that.