A cost-effective cash flow solution to defer payment of Duty & VAT to the Revenue.
A duty deferment bond or guarantee protects the Revenue from the risk of payment default, usually due to company insolvency.
If you are importing goods into Ireland, you may have to pay the Revenue Duty and VAT at the point of entry. However, you are unlikely to have received payment from your customers at this point, thereby creating potential cash flow issues. There is an answer.
A simple solution
The Duty Deferment Guarantee allows for payment of Duty and VAT to be deferred for up to 45 days, which will take you closer to the time when you can expect to be paid by your customers. This is possible because the guarantee protects the interests of the Revenue for outstanding Duty and VAT in the event of default or your insolvency.
Main features
- Payment of Duty & VAT deferred by up to 45 days
- Guarantee available on a 12 month ongoing facility basis
- Provides cover against domestic risk
- No collateral security required, only a standard counter indemnity
- Premium is payable prior to issue of the guarantee
- Up-to-date management accounts & annual accounts required
Benefits
- Frees up cash flow
- Does not compromise bank overdraft facilities
- Straightforward solution with minimal administration
- No Insurance Premium Tax applies
