You may have started a business in an EU country which involves importing goods or even services to your country yet, if you know your customs and excise duties before you begin importing goods you’ll be able to save a lot of money and hassle vatcontrol.com/vat. It is extremely 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 possesses 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. For example if 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 for selling your goods and services in the local market.
You will first need to verify regarding which of the over 14,000 classifications apply to your specific merchandise that you plan to import to 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 intend to import an item 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 would 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 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 greater detail before starting importing and selling any services or goods imported originating from a member EU state or any other country. You need to 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 as you will have to apply for vat refund in the nation of origin while filing vat returns regularly in your own country. Additionally, there are certain custom duties and vat exemptions that will help you save on taxes but only if you understand them.
Once you get your company vat registration you will then 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 will also have to be conversant with export laws of your plus the destination country more info. Since vat customs and excise rules and rates keep changing at regular intervals it is vital you and your vat agent understand the latest rules so that you avoid getting a rude shock whenever your goods reach your country’s dock or airport.
It is extremely vital that you cover all aspects of your business including purchase, sales, and all sorts of 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 as this is the only method you can start your business on firm ground.
