The most common way of verifying a Wholesaler is the price of the products. Wholesalers normally have a lesser product price than Retailers.
This is due to a number of reasons including that Wholesalers often source products in bulk directly from the manufacturer.
Businesses like to purchase from Wholesalers because they may also enjoy not paying VAT or paying VAT and getting tax deduction, Tax credit or rebate depending on the Country.
So one way to verify a Wholesaler is to look at their Tax registration status and the benefits of it to other Businesses.
Hong Kong is a free port, Hong Kong does not issue TIN for communicating with taxpayers and does not impose sales tax or VAT.
This means that generally businesses in Hong Kong do not charge sales taxes or VAT on products exported out of Kong Kong, imported into Hong Kong and sold in Hong Kong.
Therefor a legitimate Hong Kong Supplier would never charge you Hong Kong sales or VAT tax on the product price on invoice.
If you are buying products from Hong Kong to another Country while Hong Kong has 0% export tax rate. Your Country may have its own sales tax which may be charged to the product, so that’s something to keep in mind.
To verify a Hong Kong Supplier, you need to check if the Suppliers Business is legally registered in Hong Kong.
Verifying the Business registration status of an Hong Businesses is quick and free process that can be done online and we’ll have detailed the steps in this Article.
