You may have started a small business in an EU country that involves importing goods or even services to your country but if your know your customs and excise duties before you begin importing goods then you can save lots of money and hassle. It is rather important that you know the exact duty rates including vat rates 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 value added tax have their own vat rules that need to be followed with perfect precision. As an example if your import organization is based in the UK then you’ll need to follow hm customs and excise rules while importing your goods while also following hmrc vat rules for import as well as selling your goods and services in the local market.
You will first need to verify as to which of the over 14,000 classifications pertain to your particular product that you plan to import to 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 example if you plan to import a product 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 only if you’re vat registered trader in the united kingdom and provide enough documentary proof in Sweden to show that you have sold the item locally and also have paid vat in UK for the same.
You’ll 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 from a member EU state or other country. You should hire the services of a trusted vat agent which is not only conversant with uk vat but will also be well versed in eu vat as 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. Additionally, there are certain custom duties and vat exemptions that can help you save on taxes but only if you understand them.
When you get your company vat registration then you will be allotted a vat number and will also need to issue vat invoices whilst selling your goods and services. If you plan to export the items outside your country then you will also need 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 crucial that you and your vat agent understand 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 extremely vital that you cover every aspect of one’s business including purchase, sales, and all sorts of related duties and taxes before you actually implement your plans. This move includes scrutinizing all customs and excise duties relevant to your products or services so your final product costs tally exactly against your predictions since this is the only method you can start your business on firm ground.