You might have started a small business in a EU country which involves importing goods or even services to your country yet, if you know your customs and excise duties before you begin importing goods then you can save a lot of money and hassle. It is extremely essential that you know the exact duty rates including vat rates if you wish to extract the very best profits out of your sales, and purchases.
Each country possesses its own specific customs and excise rules, and countries that have adopted vat or value added tax have their own vat rules that need to be followed with perfect precision. For example in case your import business is located in the UK then you’ll 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 into the UK. While customs duties pertain to almost all imported products, excise duties in the united kingdom usually apply to most tobacco and alcohol products. Again, for instance if you plan to import a product vatnumbersearch 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 are a vat registered trader in the united kingdom and supply enough documentary proof in Sweden to demonstrate that you have sold the item locally and have paid vat in UK for the very same.
You will thus need to know all customs and excise vat rules and rates in greater detail before you start importing and selling any services or goods imported from a member EU state or any other country. You need to engage the services of a trusted vat agent which is not only conversant with uk vat but also be amply trained in eu vat since you will need to make an application for vat refund in the nation of origin while filing vat returns on a regular basis in your own country. There are also certain custom duties and vat exemptions that will help you save on taxes but as long as you understand them.
Once you get your company vat registration then you will be allotted a vat number and will also need to issue vat invoices whilst selling your services and goods. If you intend 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 as well as 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 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 could start your enterprise on firm ground.