You may have started a business in a EU country which involves importing goods and even services into your country but if your know your customs and excise duties before you begin importing goods then you can save a lot of money and hassle. It is extremely important that you know the exact duty rates including vat rates if you want to extract the very 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 also have their unique vat rules that need to be followed with perfect precision. As an example if your import business is based 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 selling your products or services in the local market.
You will first need to verify as to which of the over 14,000 classifications apply to your specific merchandise that you plan to import to the UK. While customs duties pertain to virtually all imported products, excise duties in the united kingdom usually apply to most tobacco and alcohol products. Again, for example if you plan to import a product https://vatnumbersearch.com into the UK from Sweden where local vat has already been paid then you may qualify to reclaim that vat amount in Sweden. This would be possible only if you’re vat registered trader in the united kingdom and supply enough documentary proof in Sweden to demonstrate that you have sold the item locally and also have paid vat in UK for the very 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 any other country. You need to hire the services of a trusted vat agent which is not only conversant with uk vat but will also be amply trained in eu vat as you will have 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 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 those 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 crucial that you and your vat agent understand the latest rules so that you avoid getting a rude shock whenever your goods reach your country’s dock or airport.
It is rather crucial that you cover every aspect of one’s 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 related to your products so that your final product costs tally exactly against your predictions as this is the only way you can start your business on firm ground.