You may have started a business in a EU country that involves importing goods or even services into your country but if your know your customs and excise duties before you begin importing goods then you can save a lot of money and hassle. It is extremely important that you know the exact duty rates including vat rates if you want to extract the best profits from your sales, and purchases.
Each country possesses its own specific customs and excise rules, and countries that have adopted vat or value added tax also have their own vat rules that need to be followed with perfect precision. For example if your import business is based in the UK then you will 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 goods and services in the local market.
You may first need to verify as to which of the over 14,000 classifications pertain to your specific product that you plan to import into the UK. While customs duties pertain to virtually all imported products, excise duties in the united kingdom usually apply to most tobacco and alcohol products. Again, for instance if you intend to import a product vatnumbersearch into the UK from Sweden where local vat is already paid then you could be eligible to reclaim that vat amount in Sweden. This would be possible only if you are a vat registered trader in the united kingdom and supply enough documentary proof in Sweden to demonstrate that you have sold the product locally and also have paid vat in UK for the same.
You’ll thus have to know all customs and excise vat rules and rates in detail before starting importing and selling any goods or services imported from a member EU state or other country. You should hire the services of a trusted vat agent that is not only conversant with uk vat but will also be well versed in eu vat since you will need to apply for vat refund in the nation of origin while filing vat returns on a regular basis in your own country. Additionally, there are certain custom duties and vat exemptions that will help you save on taxes but as long as you understand them.
When you get the company vat registration then you will be allotted a vat number and will have to issue vat invoices whilst selling your goods and services. If you plan to export the items outside your country then you will also need to be conversant with export laws of your plus the destination country. Since vat customs and excise rules and rates keep changing at regular intervals it is vital that you and your vat agent know the latest rules so that you do not get 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 or services so that your final product costs tally exactly against your predictions since this is the only way you could start your business on firm ground.