Brand genuine product

1. Directly managed store/authorized agent purchasing
Purchase at brand stores and authorized distributors in Austria.

2. Attaching a copy of the receipt at the time of purchase <br>A copy of the receipt at the time of purchase is attached. (Please let us know your preference.)

3. Directly managed store support in Japan <br>Since this is a genuine product, you can receive support at directly managed stores in Japan. If the brand has a user registration system, you can register using the QR code or serial number.

4. We are registered as an official export business.

I don't think 1, 2, and 3 need any explanation, but I think it's hard to understand the causal relationship in 4. This is also a big reason why we are selling genuine products . I will explain the details. It is long, so please read the following only if you are interested.

Official business registration

Our store is officially registered as an export business with WKO (Austrian Chamber of Commerce and Industry).

If you wish to conduct any kind of business in Austria, you must register with WKO and receive a GISA number. Additionally, it is essential to obtain a VAT number for use in tax declarations and an EORI number for import and export. All business activities are recorded and the tax authorities are fully aware of them.

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VAT refund

When exporting outside the EU, apply for a VAT refund. In principle, all products sold within the EU include VAT (value added tax). These items are intended for consumption within the EU. Therefore, when exporting outside the EU, the tax authorities will refund the amount.

When receiving this VAT refund, the tax audit is extremely strict. Since the people pay their taxes back to them as refunds, it is natural that the tax authorities handle them strictly. they are experts. If there is any fraud, we will not overlook it.

The tax audit system is as follows.

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There are three points to focus on: the entrance, exit, and the ledger in our store.

1. Exit

[Matching product name and quantity]

The tax authorities search and check customs documents to determine whether the contents of our store's declaration match the contents of the customs declaration in the customs database. In principle they should match.

In other words, do the products that our store declares as exported match the products recorded in the customs database? If there is a discrepancy, we will investigate whether it is a simple mistake or an intentional falsification.

For example, if our store's export record was less than the customs export record as shown in the image below, it would normally be a simple mistake and would be corrected. (If the amount is large, there is a risk that you may be considered to have intentionally underreported to reduce your income tax.)

2. Accounts in our store

Next, look at the product for which you are applying for a VAT refund. Since our store operates as an exporter of luxury brands, we basically apply for a VAT refund on all exported items.

Of course, what is important is the product for which a VAT refund has been applied for, but even if the product is not applied for a refund, there must be a record of the purchase of the product as long as it is exported. There is a problem if there is no purchase record. Furthermore, if a product is in a price range where you should be able to apply for a VAT refund, but you have not applied, the reason will be investigated. Accountability will be asked for everything.

Specifically, a tax audit is conducted as follows.

The tax officer will randomly select one product from those listed in the export record. Regarding this, we will immediately present the relevant file from the purchase record binder.

Then, they carefully examine whether it is really the product. Product name, price, quantity, etc. We take a very close look at the price, including whether it matches the taxable price listed on the export invoice.

In principle, everything matches as shown in the image below.

3. entrance

[Concordance with the buyer's books]

Are the products purchased from the supplier included in the VAT that have passed through proper distribution channels? Fake branded products do not follow proper distribution channels. In other words, it is unclear whether the VAT has been paid properly. If you export such items and apply for a VAT refund, you will be committing refund fraud. Additionally, if you are dealing in counterfeit branded products, you will be referred to the public security authorities as a separate case from fraud.

So, what kind of research will you specifically conduct?

・Did you really buy it from there?

→ Check with the ledger of the purchaser (directly managed store or authorized dealer) to see if the date, item, amount, etc. match our store. We may even check your bank account to see if your money movements are consistent.

[Reliability of supplier]

・Is the buyer a reliable supplier?

→ If the purchaser is a directly managed store, this concern will be resolved.

→ If the company is separate from the brand, such as an authorized distributor, the investigation will continue. For example, does the official retailer have a formal contract with the brand manufacturer? How long has the official retailer been in business? Has the official retailer been involved in legal issues such as lawsuits in the past? , etc. If an agency is deemed to be suspicious, an investigation is conducted to see if the sales ledger at the brand headquarters matches the purchasing ledger of the agency.

These matters are investigated by the tax authorities, who are experts, checking not only whether the books (documents) match, but also whether the actual flow of money is consistent with the books. I will.

As long as you follow this process honestly, there is no entry point for fake products to enter. The same goes for directly managed stores and authorized distributors, so there is no entry point for counterfeits to enter. It is a closed world where only genuine products are distributed.

The important thing is that it is absolutely impossible for someone to be caught with a fake item without realizing it.

【simulation】

Occasionally, we receive inquiries such as ``Is it genuine?'' ``Are you sure it's a genuine product?''

Let's simulate what it would be like if we were to mix in fake ingredients.

First of all, this is the current situation.

This is what happens when you mix fakes.

1. To prevent fake purchases from being detected, cash purchases are made off-the-books.

2. Genuine products are sold off the books. If we issue a receipt, it will be recorded in the other party's books and our various registration numbers will remain, so we will never issue one.

3. Export the fake difference.

These are very risky.

1. Since we are officially registered as a business operator, it is as if we are revealing our identity. The people selling counterfeits are part of an underworld that doesn't care about crime. It would be easy for such people to blackmail someone whose identity is known. Also, when this group is arrested by the police, it is clear that we will be arrested in the same way.

2. Everyone thinks that if you want to sell the item without a receipt, there is something behind it, such as a late purchase. In that case, it is not surprising that the people who try their hand at it are dangerous people. People will look at your feet and beat you up. It's not much of a profit. Also, like #1, it would not be surprising if they became a target of blackmail. Furthermore, when those people are arrested, we will be investigated as well, just like in case 1.

3. I'm sure some people who bought fake products will eventually realize that it wasn't the real thing. When that happens, those of us who have made our identities clear will definitely be arrested and brought to justice.

Tax audits don't just look at accounting documents, they also look at the movement of money in bank accounts and check their consistency. If you are suspected of dealing in illegal goods, you will be prosecuted. In addition, the sale and purchase of counterfeit goods is subject to extremely strict control in Europe, and the police are watching closely.

Given this situation, it doesn't matter if it's for a short period of time, but if the period gets longer and the number of transactions increases, it will eventually become exposed.

If exposed, you will suffer huge disadvantages such as administrative penalties, criminal penalties, and civil compensation. For foreigners like us who live with a residence permit, we will lose even the basis of our livelihood if our residence permit is revoked.

What do you think? It's just not worth it to make a little money off of fake products.

The foundation of sound business management is the ethics of the people involved. However, human ethics differ from person to person, and are inherently fragile. Various laws and regulations provide a certain framework to ensure that things do not go outside. As long as you comply with this, a certain level of quality will be guaranteed in your business activities. I think this is the basics.

Specifically, it is essential to conduct business within a distribution channel that never allows counterfeits to enter the market.

We believe that whether a business is attractive enough to be chosen by everyone is reflected in its track record. I would like you to take a look at our past achievements.