I need to check the forums more often...
thanks for the answer guys.
the missus has a small store. She imports products from the states and canada. Previously the quantities were low enough that individual orders from manufacturers did not exceed $200. Now sales are going up, and If we want to make larger orders, we would be severely penalized. So I have thought of the following two points/assumptions:
1) The $200 tax free limit is imposed on all imports, i.e. for individuals for personal use as much as for business. Presumably, this number is low to encourage dominicans to buy locally? So I assume, there must be some tax incentive for businesses that need to order raw materials from overseas .
2) I cannot fathom that businesses in this country that rely on bulk orders are paying 18% ITBIS compounded on 20% tax import fees. It would just boggle my mind. Surely the retail stores that rely on wholesale US products, like musical instruments, cosmetic products, clothing, etc. don't pay +38% on their wholesale costs, because the markup of items here compared to the states is nowhere near close to 40%.
So I assume (maybe wrongly) that there could exist some sort of government incentive program that gives tax breaks to businesses ordering overseas or so on.
How else would someone become a wholesale distributor here?
