You might have started a small business in a EU country which involves importing goods or even services into your country yet, if you know your customs and excise duties before you begin importing goods then you can save lots of money and hassle. It is rather essential that you be aware of exact duty rates including vat rates vatverification if you wish to extract the best profits out of your sales, and purchases.
Each country possesses its own specific customs and excise rules, and countries that have adopted vat or vat have their own vat rules that should be followed with perfect precision. For example if your import organization is located in the UK then you’ll need to follow hm customs and excise rules while importing your goods while also following hmrc vat rules for import as well as selling your products or services in the local market.
You may first have to verify regarding which of the over 14,000 classifications pertain to your specific merchandise that you intend to import into the UK. While customs duties pertain to almost all imported products, excise duties in the united kingdom usually apply to most tobacco and alcohol products. Again, for example if you intend to import an item into the UK from Sweden where local vat is already paid then you could qualify to reclaim that vat amount in Sweden. This would be possible only if you’re vat registered trader in the united kingdom and supply enough documentary proof in Sweden to show that you have sold the product locally and also have paid vat in UK for the same.
You will thus need to know all customs and excise vat rules and rates in greater detail before starting importing and selling any services or goods imported originating from a member EU state or other country. You should engage the services of a dependable vat agent which is not only conversant with uk vat but also be amply trained in eu vat as you will have to apply for vat refund in the country of origin while filing vat returns on a regular basis in your own country. There are also certain custom duties and vat exemptions that can help you save on taxes but only if you know about them.
When you get your company vat registration you will then be allotted a vat number and will have to issue vat invoices whilst selling your services and goods. If you plan to export those items outside of your country then you will also need to be conversant with export laws of your own as well as the destination country. Since vat customs and excise rules and rates keep changing at regular intervals it is crucial that you as well as your vat agent know the latest rules so that you will avoid getting a rude shock whenever your goods reach your country’s dock or airport.
It is rather vital that you cover every aspect of one’s business including purchase, sales, and all related duties and taxes before you actually implement your plans. This move includes scrutinizing all customs and excise duties related to your products so that your final product costs tally exactly against your predictions since this is the only way you could start your enterprise on firm ground.