You may have started a small business in a EU country that involves importing goods and even services to your country yet, if you know your customs and excise duties before you begin importing goods you’ll be able to save a lot of money and hassle. It is rather essential that you be aware of exact duty rates including vat rates if you want to extract the very best profits from your sales, and purchases.
Each country has its own specific customs and excise rules, and countries which have adopted vat or vat have their own vat rules that should be followed with perfect precision. As an example if your import organization is based in the UK then you’ll have 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 need to verify as to which of the over 14,000 classifications apply to your particular merchandise that you plan to import to the UK. While customs duties apply to virtually all imported products, excise duties in the UK usually apply to most tobacco and alcohol products. Again, for example if you intend to import a product vatnumbersearch into the UK from Sweden where local vat is already paid then you may qualify to reclaim that vat amount in Sweden. This would be possible if only you’re vat registered trader in the UK and provide enough documentary proof in Sweden to demonstrate that you have sold the product locally and also have paid vat in UK for the very same.
You will thus need to know all customs and excise vat rules and rates in detail before starting importing and selling any services or goods imported originating from a member EU state or other country. You need to hire the services of a trusted vat agent that is not only conversant with uk vat but also be well versed in eu vat since you will need to make an application for vat refund in the country of origin while filing vat returns regularly in your own country. Additionally, there are certain custom duties and vat exemptions that can help you save on taxes but only if you understand them.
When you get your company vat registration then you will be allotted a vat number and will also have to issue vat invoices whilst selling your goods and services. If you plan to export those items outside your country then you’ll also need to be conversant with export laws of your own 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 understand the latest rules so that you will avoid getting a rude shock whenever your goods reach your country’s dock or airport.
It is extremely crucial that you cover all aspects of your business including purchase, sales, and all related duties and taxes before you decide to actually implement your plans. This move includes scrutinizing all customs and excise duties relevant to your products so that your final product costs tally exactly against your predictions since this is the only way you can start your enterprise on firm ground.