You may have started a business in a EU country that involves importing goods and even services to your country but if your know your customs and excise duties before you start 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 wish to extract the very best profits out of your sales, and purchases.
Each country possesses its own specific customs and excise rules, and countries that have adopted vat or value added tax also 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 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 will first need to verify regarding which of the over 14,000 classifications apply to your particular product that you intend to import into the UK. While customs duties apply to almost all imported products, excise duties in the UK usually apply to most tobacco and alcohol products. Again, for example if you plan to import an item vatnumbersearch to the UK from Sweden where local vat has already been paid then you may be eligible to reclaim that vat amount in Sweden. This may be possible only if you’re vat registered trader in the UK and supply enough documentary proof in Sweden to show that you’ve sold the product locally and have paid vat in UK for the same.
You will thus have to know all customs and excise vat rules and rates in greater detail before you start importing and selling any services or goods imported from a member EU state or any other country. You should engage the services of a trusted vat agent that is not only conversant with uk vat but will also be amply trained in eu vat since you will need 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 will help you save on taxes but as long as you understand them.
When 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 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 vital that you cover all aspects 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 relevant to your products or services so that your final product costs tally exactly against your predictions since this is the only method you could start your business on firm ground.