A Short Guide To Taxes For Freight Shippers

When you decide to turn to shipping for some of your items and products, getting to know taxes is essential. You will have to go through everything carefully and make sure all of your calculations are right. Different countries have different rules and with that taxes.  The good news is that a quick search can help you form a guide that you can follow the entire time. The further the destination is, the more focused you will have to be. The place you wish to ship something to will play a huge role in this process as well. So, what is the easiest way to get familiar with taxes for freight shippers? Just follow this guide and apply it to your current situation and needs.

Value-added tax and its importance

If we are to talk about Saudi Arabia and companies like Four Winds Saudi Arabia, it is pretty easy to calculate VAT. For the majority of goods and services, the rate has been set at 5% with a couple of exceptions. Since this is a pretty common issue in many countries, you shouldn’t worry that it will interfere with your entire business a lot. This tax will be included in all sorts of goods and products you wish to export or import to Saudi Arabia.

cranes on the ship
Nowadays shipping is the fastest and easiest way to transport goods from one place to another

On the other hand, payroll taxes will not bother you at all, since the individual income tax regime doesn’t exist in Saudi Arabia. It is better you focus on other taxes like social insurance tax or real estate transition tax.

Taxes for freight shippers

As you know by now, not every country will have the same taxes for the same goods. For example, the USA has some states that will not tax the cost of shipping, like Colorado. That is why checking in with logistic services international is a must, no matter what you plan on shipping and where. Keep in mind that chances are big that if you ship taxable items, all shipping charges must have tax as well. 

Luckily, Saudi Arabia offers a full list of taxes for freight shippers so that you can easily calculate yours. A lot of transport companies in Riyadh will do this for you, and you should keep good communication with them the entire time.

The equation for this is more than simple. If you plan on sending some items from the USA to Saudi Arabia, make sure you know the total cost of it. If the cost is higher than $266 you will have to pay an import tax of 15%. That means that you must pay an additional $39.90 to receive your package. Considering that this is probably the easiest way to ship your items, the percentage is not too high. Everything that goes below $266 will go without tax at all. 

Don’t forget about customs duties

This is another matter you will have to deal with apart from taxes for freight shippers. Since Saudi Arabia has different duties for different products it is better you check the official Saudi Arabia customs duties list. Simply find the product you wish to ship and check out all the details, including customs duties and taxes as well. Here are some of the items and the taxes for them:

  • Accessories 5.5%
  • Health and Beauty 5%
  •  Fashion 5%
  • Watches 5%
  • Mobile phones 0%
containers on the cargo ship
Different goods will go with different taxes

Remember, in most countries accessories are divided into two groups, the ones with batteries and the ones without them. This will not only affect the tax itself but some other matters as well. The best method for shipping accessories with batteries is to have original packaging. If for some reason you don’t have it, consult your shipping or moving company on how to proceed.

When is the right time for shipping?

All kinds of situations can make you decide to ship your items. You could be moving, going on a long vacation, o simply sending some items to someone. A lot of people are selling items this way, as online shopping becomes stronger than ever. A good freight forwarder in Saudi Arabia will not only take care of your items but help you avoid mistakes as well. This is even more important for those who are shipping something for the first time, so make sure to keep that in mind.

Before you start dealing with taxes for freight shippers, make sure you know what items are in question and that everything is in order. Follow the guide for better preparation of your items and avoid rushing things up. Those who feel like some things are not adding up, or don’t feel ready enough should postpone the process. This is extremely important, especially if you are moving to another country and want to ship some of your inventory.

Other things you should know about taxes for freight shippers

If you plan on moving with the help of international movers Saudi Arabia, you will not have to worry about your items. When shipping is included in your relocation, all taxes will be calculated for you and part of the final price. This is why starting on time is so important. Once you calculate your budget you can proceed to make changes before you schedule your move. It is completely normal if you are not that into this entire tax world and luckily professionals will be there to help you out.

cargo ship
If you can’t find your way around taxes for freight shippers, ask professionals to help you out

Whatever your plan is and whatever products you plan on shipping, taxes for freight shippers somewhat provide security for your items. Even if the total price comes out as high, usually there is no better and safer way. The estimated time for shipping your items to Saudi Arabia can vary, but usually, it takes up to 20 days, depending on the country you are shipping from. Just stay positive the entire time and look forward to sending or receiving items. With the right and professional help, your shipment will arrive on time and safely!

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