You may have started a small business in a EU country which involves importing goods and even services into your country yet, if you know your customs and excise duties before you start importing goods you’ll be able to save a lot 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 www.vatvalidation.com/vat possesses its own specific customs and excise rules, and countries which have adopted vat or vat also have their own vat rules that should be followed with perfect precision. For example if your import business is based in the UK then you will have to follow hm customs and excise rules while importing your goods while also following hmrc vat rules for import as well as selling your products or services in the local market.
You will first have to verify regarding which of the over 14,000 classifications pertain to your particular product that you plan to import into 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 plan to import a product into the UK from Sweden where local vat is already paid then you may qualify to reclaim that vat amount in Sweden. This would be possible only if 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 same.
You will thus have to know all customs and excise vat rules and rates in detail before you start importing and selling any goods or services imported originating from a member EU state or other country. You should engage the services of a dependable vat agent which is not only conversant with uk vat but will also be well versed in eu vat since you will have to apply for vat refund in the nation 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 only if you know about them.
When you get the company vat registration then you will be allotted a vat number and will need 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 plus the destination country. Since vat customs and excise rules and rates keep changing at regular intervals it is vital that you as well as your vat agent know the latest rules so that you do not get a rude shock whenever your goods reach your country’s dock or airport.
It is rather crucial that you cover every aspect of your 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 related to your products or services 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.