You might have started a small business in a EU country which 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 a lot of money and hassle. It is extremely essential that you be aware of exact duty rates including vat rates https://vatverification.com if you want to extract the 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 vat have their unique vat rules that need to be followed with perfect precision. As an example in case your import organization is based in the UK then you will need 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 apply to your specific product that you plan to import into the UK. While customs duties apply to virtually all imported products, excise duties in the UK usually apply to most tobacco and alcohol products. Again, for instance if you intend to import an item 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’re vat registered trader in the united kingdom and supply enough documentary proof in Sweden to show that you have sold the item locally and have paid vat in UK for the very same.
You will thus have 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 any other country. You should hire the services of a trusted vat agent that is not only conversant with uk vat but also be amply trained in eu vat as you will need to apply for vat refund in the country 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 as long as you understand them.
Once you get the company vat registration you will then be allotted a vat number and will need to issue vat invoices whilst selling your goods and services. If you intend to export the items outside your country then you’ll also have 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 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 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 or services so that your final product costs tally exactly against your predictions as this is the only method you could start your business on firm ground.