You might have started a 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 then you can save lots of money and hassle. It is rather essential that you know the exact duty rates including vat rates vatverification if you want to extract the best profits from your sales, and purchases.
Each country has its own specific customs and excise rules, and countries that have adopted vat or vat have their unique vat rules that need to be followed with perfect precision. For example if your import organization is located 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 for selling your goods and services in the local market.
You may first have to verify regarding which of the over 14,000 classifications pertain to your particular merchandise that you intend 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 intend to import a product to the UK from Sweden where local vat has already been paid then you may be eligible to reclaim that vat amount in Sweden. This may be possible if only you’re vat registered trader in the UK and provide enough documentary proof in Sweden to demonstrate that you’ve 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 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 as you will need to make an application for vat refund in the nation 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 you will then be allotted a vat number and will also have to issue vat invoices whilst selling your services and goods. If you intend to export the items outside of your country then you’ll also need to be conversant with export laws of your as well as 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 will do not get a rude shock whenever your goods reach your country’s dock or airport.
It is extremely vital that you cover every aspect of your business including purchase, sales, and all sorts of 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 or services so that your final product costs tally exactly against your predictions since this is the only way you can start your business on firm ground.