Know your customs and excise duties before you start importing goods

You might have started a business in an EU country which involves importing goods and even services into your country but if your know your customs and excise duties before you begin importing goods you’ll be able to save a lot of money and hassle. It is rather important that you be aware of exact duty rates including vat rates if you want to extract the best profits from your sales, and purchases.

Each country has its own specific customs and excise rules, and countries that have adopted vat or vat have their unique vat rules that need to 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 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 pertain to your particular product that you plan 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 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 may be possible if only you’re vat registered trader in the UK and provide enough documentary proof in Sweden to demonstrate that you have sold the item locally and also have paid vat in UK for the very same.

You will thus have to know all customs and excise vat rules and rates in greater detail before starting importing and selling any goods or services imported from a member EU state or any other country. You need to hire the services of a dependable vat agent that is not only conversant with uk vat but will also be amply trained in eu vat since 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 as long as you understand them.

When you get the 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 those items outside your country then you will also have to be conversant with export laws of your as well as 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 do not get 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 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.