You might have started a 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 you’ll be able to save a lot of money and hassle. It is extremely important that you be aware of exact duty rates including vat rates vat verification if you want to extract the very best profits out of your sales, and purchases.
Each country possesses its own specific customs and excise rules, and countries which have adopted vat or value added tax also have their own vat rules that need to be followed with perfect precision. As an example if your import organization is based in the UK then you will have to follow hm customs and excise rules while importing your goods while 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 product that you plan to import to the UK. While customs duties apply to almost all imported products, excise duties in the UK usually apply to most tobacco and alcohol products. Again, for example if you plan to import an item into the UK from Sweden where local vat has already been paid then you could qualify to reclaim that vat amount in Sweden. This may be possible only if you are a vat registered trader in the UK and provide enough documentary proof in Sweden to demonstrate that you’ve sold the product locally and have paid vat in UK for the same.
You’ll thus need to know all customs and excise vat rules and rates in detail before you start importing and selling any goods or services imported originating from a member EU state or other country. You need to engage the services of a trusted vat agent which is not only conversant with uk vat but 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 can 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 also need to issue vat invoices whilst selling your goods and services. If you intend to export the items outside of your country then you’ll also have 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 you as well as your vat agent understand the latest rules so that you do not get a rude shock whenever your goods reach your country’s dock or airport.
It is extremely vital that you cover all aspects of your business including purchase, sales, and all sorts of related duties and taxes before you actually implement your plans. This move includes scrutinizing all customs and excise duties relevant to your products so your final product costs tally exactly against your predictions since this is the only method you could start your business on firm ground.