{"id":6160,"date":"2024-04-24T13:31:29","date_gmt":"2024-04-24T11:31:29","guid":{"rendered":"https:\/\/nicola-bernard.de\/?p=6160"},"modified":"2024-04-24T13:31:29","modified_gmt":"2024-04-24T11:31:29","slug":"incoterms-exw-and-ddp-involve-risks-in-foreign-trade","status":"publish","type":"post","link":"https:\/\/nicola-bernard.de\/en\/incoterms-exw-and-ddp-involve-risks-in-foreign-trade\/","title":{"rendered":"Incoterms\u00ae EXW and DDP involve risks in foreign trade &#8211; Read here why and which alternatives to select"},"content":{"rendered":"<p>The Incoterms\u00ae are globally accepted contract and delivery terms that enable all parties of a sales contract a standardized transaction in international trading business. They determine cost allocation and risk distribution as well as the due diligence obligations between the contracting partners.<\/p>\n<p>The Swabian Chamber of Industry and Commerce (IHK Schwaben) now advises against using the EXW and DDP clauses in foreign trade transactions for the following fiscal reasons:<\/p>\n<ul>\n<li><strong>Incoterm\u00ae EXW<\/strong> stipulates that the third country customer collects the goods and <strong>realizes the export in own name (i.e. with the own EORI number)<\/strong>.<\/li>\n<\/ul>\n<p style=\"padding-left: 40px;\">In practice, this is hardly possible due to the EU residency requirement &#8211; however, assumption by the EU-based freight forwarder is conceivable. With the freight forwarder handling customs clearance and therefore assuming the position of <strong>the exporter under customs <u>and<\/u> tax law<\/strong>, the seller is no longer regarded as exporter under tax law. The invoice must therefore be issued <strong>with German VAT<\/strong>.<\/p>\n<ul>\n<li>According <strong>to Incoterms\u00ae DDP<\/strong>, the third-country supplier becomes EU importer and is therefore <strong>entitled to deduct EU VAT<\/strong>.<\/li>\n<\/ul>\n<p style=\"padding-left: 40px;\">If the EORI number of the EU company is &#8211; <strong>contrarily to contract<\/strong> &#8211; used in practice, it may be <strong>prohibited from refunding EU VAT<\/strong>.<\/p>\n<p>It is recommended to use the Incoterms\u00ae clause FCA instead of the EXW clause &#8211; even if this provides for additional loading of the goods by the seller onto the buyer&#8217;s 1st means of transport.<\/p>\n<p>As an alternative to the Incoterms\u00ae DDP clause, foreign trade contracts should be based on the DAP clause, which &#8211; compared to DDP &#8211; excludes the sellers responsibility for customs and tax handling in the country of destination.<\/p>\n<p>&nbsp;<\/p>\n<p>Source: \u201eIHK special \u2013 Sales tax and customs \u201cseminar in Augsburg on 27.02.2024<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Incoterms\u00ae are globally accepted contract and delivery terms that [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":6157,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-6160","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-allgemein-en"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.4 - 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