You might have started a business in an EU country that involves importing goods and even services to your country but if your know your customs and excise duties before you begin importing goods you’ll be able to save a lot of money and hassle. It is rather essential that you be aware of exact duty rates including vat rates http://vatverification.com if you want to extract the best profits out of your sales, and purchases.
Each country has its own specific customs and excise rules, and countries which have adopted vat or vat have their own vat rules that should be followed with perfect precision. As an 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 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 particular merchandise that you plan to import to 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 example if you intend to import an item to the UK from Sweden where local vat is already paid then you could qualify to reclaim that vat amount in Sweden. This may be possible only if you’re vat registered trader in the UK and provide 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 detail before you start importing and selling any services or goods imported originating 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 will also be amply trained in eu vat since you will have to make an application 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 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 services and goods. If you plan to export those items outside of your country then you’ll also have to be conversant with export laws of your plus 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 know the latest rules so that you will do not get a rude shock when your goods reach your country’s dock or airport.
It is rather vital 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 your final product costs tally exactly against your predictions since this is the only method you could start your business on firm ground.