You may have started a business in an EU country which involves importing goods and even services to your country yet, if you know your customs and excise duties before you begin importing goods you’ll be able to save lots of money and hassle. It is rather essential that you know the exact duty rates including vat rates if you wish to extract the best profits out of your sales, and purchases.
Each country vatvalidation.com/vat possesses its own specific customs and excise rules, and countries that have adopted vat or value added tax also have their unique vat rules that need to be followed with perfect precision. For example in case your import organization is based 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 will 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 pertain to virtually 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 into the UK from Sweden where local vat is already paid then you may be eligible to reclaim that vat amount in Sweden. This would be possible if only you are a vat registered trader in the united kingdom and supply enough documentary proof in Sweden to show that you’ve sold the item 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 greater detail before starting importing and selling any goods or services imported from a member EU state or 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 amply trained in eu vat since you will have to apply 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 can help you save on taxes but as long as you understand them.
When you get your company vat registration you will then be allotted a vat number and will have to issue vat invoices whilst selling your services and goods. If you plan to export the items outside of your country then you’ll also need to be conversant with export laws of your own 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 understand the latest rules so that you will avoid getting a rude shock when 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 your final product costs tally exactly against your predictions since this is the only method you could start your business on firm ground.