You might have started a small business in an EU country that involves importing goods or even services to your country yet, if you know your customs and excise duties before you start importing goods then you can save lots of money and hassle. It is extremely important that you know the exact duty rates including vat rates www.vatverification.com if you want to extract the 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 also have their own vat rules that should be followed with perfect precision. For 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 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 apply to your particular merchandise that you intend 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 into 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 are a vat registered trader in the UK and supply enough documentary proof in Sweden to show that you have 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 starting importing and selling any services or goods imported originating from a member EU state or other country. You should engage the services of a trusted vat agent that is not only conversant with uk vat but also be amply trained in eu vat since you will need to make an application 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 know about them.
Once you get your company vat registration you will then be allotted a vat number and will have to issue vat invoices whilst selling your goods and services. If you plan to export those items outside your country then you will also need 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 will avoid getting a rude shock whenever your goods reach your country’s dock or airport.
It is extremely crucial 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 your final product costs tally exactly against your predictions as this is the only way you can start your enterprise on firm ground.