You may have started a business in a EU country that involves importing goods or 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 essential 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 value added tax have their own vat rules that need to be followed with perfect precision. As an 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 following hmrc vat rules for import as well as selling your products or services in the local market.
You may 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 united kingdom usually apply to most tobacco and alcohol products. Again, for instance if you intend to import an item vat number search to the UK from Sweden where local vat has already been paid then you could 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 provide enough documentary proof in Sweden to demonstrate that you’ve sold the product locally and also have paid vat in UK for the very same.
You’ll thus have 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 hire the services of a dependable vat agent which is not only conversant with uk vat but also be well versed in eu vat since you will have to apply for vat refund in the country of origin while filing vat returns on a regular basis 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 the company vat registration then you will be allotted a vat number and will have to issue vat invoices whilst selling your goods and services. If you plan to export those items outside of your country then you’ll also have 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 you and your vat agent know the latest rules so that you avoid getting a rude shock whenever your goods reach your country’s dock or airport.
It is extremely crucial 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 can start your enterprise on firm ground.