When a company decides to import goods, are the tariffs paid on those goods collected by customs? Or do companies treat tariffs as tax expense? In any case, can a company write off these tariffs and eventually receive a tax refund on the import taxes they paid?
can a company write off these tariffs and eventually receive a tax refund on the import taxes they paid?
A country might enact provisions to exempt (possibly via a refund) from tariffs if the importer company or the intended use of the import meets certain conditions. But generalizing a reimbursement in the form of tax refund (or tax credit) would defeat the purpose of imposing tariffs.
Keep in mind that tariffs are one mechanism through which policymakers implement barriers to entry in the domestic market. Therefore, it would make no sense for the regulator to implement such barriers only to essentially reverse them thereafter.