You might 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 you’ll be able to save lots of money and hassle https://vatcontrol.com/vat. It is rather essential that you be aware of exact duty rates including vat rates if you wish to extract the very best profits from your sales, and purchases.
Each country possesses its own specific customs and excise rules, and countries which have adopted vat or value added tax have their own vat rules that should be followed with perfect precision. As an example in case your import business 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 products or services in the local market.
You will first have to verify regarding which of the over 14,000 classifications apply to your specific merchandise that you intend to import to the UK. While customs duties pertain to almost all imported products, excise duties in the united kingdom usually apply to most tobacco and alcohol products. Again, for instance if you plan 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 if only you’re vat registered trader in the UK 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 services or goods imported originating from a member EU state or any other country. You need to hire the services of a trusted 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 regularly in your own country. There are also certain custom duties and vat exemptions that will help you save on taxes but only if you know about 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 plan to export the items outside of your country then you’ll also need to be conversant with export laws of your plus the destination country additional info. Since vat customs and excise rules and rates keep changing at regular intervals it is crucial you as well as your vat agent know the latest rules so that you will do not get a rude shock whenever your goods reach your country’s dock or airport.
It is extremely vital that you cover all aspects 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 that your final product costs tally exactly against your predictions as this is the only method you can start your enterprise on firm ground.
