Indirect Tax Lawyers Worldwide.

The difference lies in who bears the burden versus who pays the government. Direct tax, like income tax, is levied on what you earn; you pay it directly to the state, and it cannot be shifted to someone else. Indirect tax, like VAT or GST, is levied on what you spend. The business collects this tax from the customer and passes it to the government. Essentially, the business acts as an unpaid tax collector for the state rather than the actual taxpayer.

VAT is a multi-stage tax charged at every step of the supply chain. A manufacturer charges it to a wholesaler, who charges it to a retailer. Critically, businesses can claim a credit for the VAT they paid on their inputs, meaning they only pay tax on the “value added.” Sales tax is a single-stage tax charged only once at the final point of sale to the consumer. For businesses, VAT requires more complex record-keeping but prevents tax from cascading (tax on tax) through the production line.

Yes, specifically for classification disputes. Every product has a specific “HS Code” that determines its duty rate. If you classify a smart watch as a “timepiece” instead of a “wireless device,” you might overpay millions or face penalties for underpayment. A lawyer argues your case before customs tribunals to ensure your goods are classified in the category with the most favorable tariff rate, protecting your profit margins.

Most jurisdictions now follow the “destination principle.” This means tax is due where the customer is located, not where the seller is based. If you sell software from the US to a user in France, you likely owe French VAT. Lawyers help you map your sales data to identify where you have triggered an “economic nexus.” They register you in those foreign jurisdictions to ensure you are remitting tax legally without establishing a full physical branch.

Yes. Foreign businesses often leave significant money on the table. If your company paid VAT on hotel stays, conferences, or logistics while doing business abroad, you are often entitled to a refund. A lawyer manages these specific reclaim procedures—like the “13th Directive” claims in the EU. They navigate the strict deadlines and bureaucratic language barriers to get that cash back into your operating account.

Ignoring foreign tax obligations creates a “hidden liability” that grows every day. Tax authorities increasingly share data across borders. If you are caught trading without registration, you face back-taxes, interest, and penalties that can exceed the total profit you made in that market. In severe cases, authorities can seize your local inventory or block your website from complying with local ISPs until the debt is paid.

Auditors frequently target “proof of export.” If you claimed zero-rated VAT because you exported goods, you must prove they actually left the country. A lawyer defends you by organizing the logistics documentation—bills of lading and shipping manifests—to satisfy the auditor. They also fight against “missing trader” allegations, where the authorities try to hold you responsible for a supplier’s failure to pay their own taxes further up the chain.

This area involves a conflict between two government agencies. Customs authorities want the value of imported goods to be high so they can collect more duty. Corporate tax authorities want the transfer price to be low so your taxable profits are higher. A lawyer harmonizes these valuations. They ensure that the price you declare at the border matches your internal transfer pricing policy, preventing you from being penalized by one agency for satisfying the other.