You might have started a business in a EU country that involves importing goods and even services to your country but if your know your customs and excise duties before you start importing goods then you can save lots of money and hassle. It is rather important that you know the exact duty rates including vat rates vat verification if you wish to extract the very 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 unique vat rules that need to be followed with perfect precision. For example in case your import organization is located in the UK then you’ll have to follow hm customs and excise rules while importing your goods while following hmrc vat rules for import as well as for selling your products or services in the local market.
You will first need to verify regarding which of the over 14,000 classifications pertain to your specific merchandise that you plan to import to the UK. While customs duties apply to almost 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 a product to 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 only if you’re vat registered trader in the UK and supply enough documentary proof in Sweden to demonstrate that you’ve 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 detail before you start importing and selling any services or goods imported from a member EU state or other country. You should engage the services of a trusted vat agent that is not only conversant with uk vat but will also be amply trained in eu vat since you will have to make an application for vat refund in the nation of origin while filing vat returns regularly in your own country. There are also certain custom duties and vat exemptions that will help you save on taxes but only if you know about them.
Once 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 goods and services. If you intend to export the items outside 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 you and your vat agent understand the latest rules so that you will do not get a rude shock when 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 related duties and taxes before you 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 method you can start your enterprise on firm ground.