Jøtul Group is a world-leading Norwegian manufacturer of fireplaces and wood stoves with subsidiaries in Denmark, the USA, France, Spain, Italy, the UK and Poland. The products are marketed in 43 countries on six continents under the brands Jøtul, Scan, Atra, Ild and Warm.
Jøtul needed to simplify its customs procedures and improve its liquidity, while also decreasing the use of transit documents. Based on its own VAT representation, Jøtul used to pre-pay the import VAT in many EU countries. The result was large amounts of already paid VAT, an enormous unnecessary cost for Jøtul.
The KGH solution
KGH created a solution whereby Jøtul is registered for VAT in Sweden. All goods with final destination in the EU are customs cleared directly by KGH at the first entry border in the EU. KGH also reports Intrastat and monthly VAT returns directly to the end user in the EU.
The liquidity has been improved significantly for Jøtul as all the former pre-paid VAT amounts have been reduced. At the same time, Jøtul now has full control over the customs handling. Other improvements include reduced administrative costs, and the number of VAT representatives used in the EU is now at a minimum.
About Jøtul AS
Georg Bjørnson, Financial Manager at Jøtul AS