I and the team are working a sem long project, where we present ourselves new bu

Question

I and the team are working a sem long project, where we present ourselves new business idea, first giving the proposal of the business idea and explore into areas( in-detail) like in marketing plan, technology plan, personnel plan etc...

Summary

Here is the idea that we present a web application that uses 3d printing technology for producing custom items like mobile gadgets, electronics peripherals, customs decorative artistry items etc.... For now, we assuming the production of custom mobile cases where the customer can interact virtually in designing his own mobile case with the application interface and order the custom good........

Business point:

Our company is a middleman we don't have 3D printers to produce a custom, we rely on local 3d printers store or industries to produce the custom. We are Business to business, where we connect retailers or customers with 3D printing industry.....

Question:

Now, Geographically we don’t have any specifications since we don’t have any locations for the customers to go to, but rather just use our website. However, since we are just a start up company, for now we will be focusing on Michigan customers.... I just like know more in terms of environment, for some important economic factors that can affect our product and service (such as trade area growth, industry health, economic trends etc...)

Please provide a valid response.

Explanation / Answer

There are many economic factors affecting the company using 3d printing technology for producing custom items .the first thing is the ownership of a product’s Intellectual property (IP). Is it the designer, the programmer who translates the design into a printable file, the business or consumer printing out a product? If not managed effectively, VAT can quickly become a real cost to THE company. There could be considerable administrative costs of registering for VAT around the world and continually updating IT systems to reflect variable and changing VAT rate in different countries. The intangible nature of 3d printing could raise the risk of double taxation because tax authority in different countries could disagree on the split between tangible or intangible nature of 3d printing. Increasing availability of 3d printers in local markets changes global trade flows but the raw materials and components used in 3d printers still cross borders .there are export controls in order to keep certain technologies out of the hands of foreign governments which may impose specific restrictions on 3D printers. Thus In such an environment, tax risk is at an all-time high and 3D business proposition could be undermined by tax costs.

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