Foreign economic activity

The painAn entrepreneur enters international deals but does not see the whole chain of risks: the contract, currency, documents, taxes, customs and liability all remain disconnected.

• The concept of foreign economic activity (FEA) and types of foreign economic transactions
• Import, export, services, royalties, agency and intermediary models
• The roles of the parties in a deal: resident, non-resident, supplier, buyer, carrier
• A map of a FEA deal: from intention to closing documents
• Typical mistakes entrepreneurs make when working with non-residents

The resultThe participant understands the logic of FEA as a single managerial system and sees where the main legal, tax, currency and documentary risks arise.

The painA contract with a foreign partner is often signed as a formality, without checking the terms of delivery, payment, liability, currency, documents and tax consequences.

• The structure of a foreign trade contract
• Essential terms: subject matter, price, currency, deadlines, delivery, acceptance
• Incoterms and the impact of delivery terms on costs and liability
• Primary and closing documents in FEA
• The authority of signatories, powers of attorney, the language of the contract, annexes and specifications

The resultThe participant understands which contract terms affect money, taxes, customs and risks, and is able to check the basic package of documents for a FEA deal.

The painWhen dealing with goods, an entrepreneur often accounts only for delivery and customs, but forgets about the list of exemptions, prohibitions, restrictions, the accompanying invoice for goods (SNT) and export-import control.

• Import and export of goods: the key stages of the movement of goods
• Customs value, HS commodity codes (TN VED), the goods declaration
• Carrier documents, invoices, packing lists, certificates and permits
• Customs payments: duty, VAT, fees, payment deadlines and the calculation base
• The list of exemptions: when special rules, restrictions and controls apply to goods
• The accompanying invoice for goods (SNT) and export-import control: when an SNT is issued, prohibitions, restrictions, licences, permits, certificates and sanctions risks

The resultThe participant understands how logistics, customs, customs payments, the accompanying invoice for goods (SNT), the list of exemptions, export-import control and accounting come together into a secure FEA deal in goods.

The painSettlements with non-residents go through the bank, but the owner does not always understand the requirements of currency control, the deadlines, the supporting documents and the consequences of discrepancies.

• Currency contracts and settlements with non-residents
• Bank currency control and supporting documents
• Advance payments, deferred payment, partial payments and refunds
• Exchange rate differences and the impact of currency on the financial result
• Control of deadlines, obligations and closing of the deal

The resultThe participant understands the logic of currency control, is able to spot risks in settlements with non-residents, and links currency transactions to accounting and management accounting.

The painA business enters a FEA deal without a full map of risks: it signs the contract, makes a payment or delivery, and only then runs into questions about VAT, confirming the zero VAT rate on export, applying tax benefits, corporate income tax (CIT) for a non-resident, the accompanying invoice for goods (SNT), the electronic invoice (ESF), customs payments, tax conventions, currency control and supporting documents. As a result, a deal that looks profitable at first glance can turn into a source of additional assessments, fines, tax claims, loss of the right to zero VAT and failure to apply the benefits due.

• VAT on import and export operations
• CIT and VAT for a non-resident: when the obligations arise
• Conventions for the avoidance of double taxation
• Electronic invoices (ESF), the accompanying invoice for goods (SNT), tax registers and supporting documents
• FEA tax reports, desk (in-house) control and a checklist for a secure FEA deal

The resultThe participant assembles a map of the FEA deal: the contract, documents, currency, customs, customs payments, the accompanying invoice for goods (SNT), tax reports, taxes, the list of exemptions, export-import control and the control points before signing and payment.