Brand genuine product
1. Purchased directly from stores and authorized dealers
We purchase from brand-owned stores and authorized dealers within the EU.
2. Attach a copy of the receipt at the time of purchase . We will attach a copy of the receipt at the time of purchase. (Please let us know if you would like one.)
3. Support at official stores in Japan <br>As this is an authentic product, you can receive support at official stores in Japan. If the brand has a user registration system, you can register using the QR code or serial number.
4. We are a registered export business.
I think that 1, 2, and 3 are self-explanatory, but I think that the causal relationship of 4 is difficult to understand. This is also a major reason why we are dealing in genuine products . I will explain the details. This will be a long post, so please read the following only if you are interested.
Registered as a regular business
Our store is officially registered with the WKO (Austrian Chamber of Commerce and Industry) as an export business.
If you are doing any business in Austria, you must register with the WKO and get a GISA number. In addition, you must obtain a VAT number for tax reporting and an EORI number for imports and exports. These are listed in all business activities and are kept track of by the tax authorities.
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VAT Refund
If you export outside the EU, you will need to apply for a VAT refund. In principle, all goods sold within the EU include VAT (value-added tax). These are based on the assumption that they will be consumed within the EU. Therefore, it will be refunded by the tax authorities when exporting outside the EU.
When receiving this VAT refund, the tax investigation is extremely strict. Since the taxpayer is getting back the money they paid as a refund, it is only natural that the tax authorities will be strict. They are the experts. If there is any fraud, I won't miss it.
The tax audit process is as follows:
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The key points are the entrance, the exit, and the accounting books within our store.
1. Exit
[Item name and quantity match]
The tax authorities will search and compare the customs documents to see whether the information on our store's declaration matches the information on the customs declaration in the customs database. In principle, they should match.
In other words, whether the goods we declare as exported match the goods recorded in the customs database. If there are discrepancies, the authorities will investigate whether it was a simple mistake or deliberate falsification.
For example, if our store's export record was less than the customs export record as shown below, it would usually be corrected as a simple mistake. (If the amount is large, it may be considered as deliberate under-declaration in order to reduce income tax.)
2. Our store's accounting books
Next, we will look at the products for which we are applying for VAT refunds. Since our store operates as an exporter of luxury brands, we basically apply for VAT refunds on all exported products.
Naturally, what is important is that the product is one for which a VAT refund application has been made, but even if the product is not subject to a refund application, there must be a record of the purchase of the product if it is to be exported, so if there is no purchase record, it will be a problem. Furthermore, if the product is in a price range for which a VAT refund application can be made but no application has been made, the reason will be investigated. Accountability will be held for everything.
Specifically, a tax audit is carried out as follows:
The tax official will randomly select one item from the items listed in the export records, and we will promptly present the relevant file from the purchase records binder.
Then they will carefully examine whether it is really the product, including the product name, price, quantity, etc. They will look at it in great detail, such as whether it matches the taxable price listed on the export invoice.
In principle, everything matches, as shown below.
3. Entrance
[Match with the buyer's books]
Are the products you buy from your supplier VAT-included and have been through proper distribution channels? Fake brand products do not go through proper distribution channels. In other words, it is unclear whether VAT has been properly paid. If you export such products and apply for a VAT refund, you will be committing refund fraud. Also, if you are dealing in fake brand products, you will be referred to the public security authorities as a separate case from fraud.
So, what kind of research will be carried out specifically?
Did you really buy it from there?
→ We check the records of the purchaser (direct store/authorized dealer) to see if the dates, items, amounts, etc. match those of our store. We may even check bank accounts to see if there is consistency in the movement of money.
[Reliability of the buyer]
-Is the supplier a trustworthy one?
→ If you purchase from a directly managed store, this concern will be eliminated.
→ In the case of a company other than the brand, such as an authorized distributor, the investigation will continue. For example, we will check whether the authorized dealer has a legitimate contract with the brand manufacturer, how long the authorized dealer has been in business, whether the authorized dealer has been involved in any legal issues such as lawsuits in the past, etc. If a suspicious distributor is found, we will check whether the brand headquarters' sales books match the purchasing books of the distributor.
These cases are investigated by expert tax authorities, who go beyond just checking the records (documents) to see if the actual flow of money is consistent with the books, even checking the activity in bank accounts.
As long as you follow this process diligently, there is no way for counterfeit goods to get mixed in. The same goes for the directly managed stores and authorized dealers you buy from, so there is no way for counterfeit goods to get mixed in. It is a closed world where only genuine products are distributed.
The important thing is that it is absolutely impossible for you to "unwittingly buy a fake."
【simulation】
We sometimes receive inquiries such as, "Is it genuine?" and "Are you sure it's a genuine product?"
Let's simulate what it would be like to mix in counterfeits.
First, this is the current situation.
This is what happens when you mix in fakes.
1. To avoid detection, fake purchases are made off-book with cash.
2. Genuine products are sold off-book. If we were to issue a receipt, it would be recorded in the other party's book and our various registration numbers would also remain, so we will never issue one.
3. Export the fake difference.
These are very high risk.
1. We are officially registered as a business, so we are essentially revealing our identity. The people selling counterfeit goods are part of the underworld who don't care about crime. It is easy for them to blackmail us, knowing our identity. Also, it is obvious that if the police arrest this group, they will arrest us as well.
2. If someone wants to sell something without a receipt, everyone will assume that it is a fake or some other shady item. In that case, it is not surprising that the people who get involved are also dangerous people. They will take advantage of you and bid you down. You will not make much profit. Also, just like in 1, it is not surprising that you will become the target of blackmail. Furthermore, when those people are arrested, you will also be investigated, just like in 1.
3. Some of the people who purchased counterfeit goods will eventually realize that they were not genuine. When that happens, we, who have made our identity clear, will certainly be arrested and brought to justice.
Tax audits do not just look at accounting documents, but also check the movement of money in bank accounts to check for consistency. If there is suspicion of illegal trading, you will be prosecuted. Also, the sale and purchase of counterfeit goods is subject to extremely strict crackdowns in Europe, and the police are keeping a close eye on you.
Given this situation, if it were only for a short period of time it would be one thing, but if the period is longer and the number of transactions increases it will eventually become apparent.
If it is discovered, you will suffer huge disadvantages such as administrative dispositions, criminal penalties, and civil compensation. For foreigners living in Japan with permanent residence permits, like us, if our permanent residence permits are revoked, we will lose even the foundation of our livelihood.
What do you think? Making a quick buck off of fakes just isn't worth it.
The foundation of sound business operations is the ethics of the people involved. However, human ethics vary from person to person, and are inherently fragile. Various laws and regulations provide a certain framework to ensure that no one goes beyond it. As long as these are observed, a certain level of quality can be guaranteed in business activities. I believe this is fundamental.
Specifically, it is essential to conduct business within distribution channels that ensure that counterfeit products are never mixed in.
So, whether a business is attractive enough to be chosen by everyone will be reflected in its track record. I would like you to take a look at our track record so far.