You may have started a business in a EU country which 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 rather essential that you know the exact duty rates including vat rates vat verification if you wish to extract the best profits out of your sales, and purchases.
Each country has its own specific customs and excise rules, and countries that have adopted vat or vat also have their own vat rules that need to be followed with perfect precision. For example if your import business is located in the UK then you’ll need to follow hm customs and excise rules while importing your goods while following hmrc vat rules for import as well as selling your goods and services in the local market.
You may first have to verify as to which of the over 14,000 classifications apply to your specific merchandise that you plan to import into the UK. While customs duties apply to virtually 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 has already been paid then you may qualify to reclaim that vat amount in Sweden. This may be possible if only you’re vat registered trader in the united kingdom and supply enough documentary proof in Sweden to demonstrate that you have sold the item locally and also have paid vat in UK for the same.
You’ll 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 from a member EU state or any other country. You need to hire the services of a dependable vat agent which 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 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 as long as you understand them.
Once you get your company vat registration you will then be allotted a vat number and will need to issue vat invoices whilst selling your goods and services. If you plan to export the items outside of your country then you will also have 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 as well as your vat agent know the latest rules so that you avoid getting a rude shock whenever your goods reach your country’s dock or airport.
It is rather crucial that you cover every aspect of one’s 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 related to your products so your final product costs tally exactly against your predictions as this is the only way you can start your business on firm ground.