Know your customs and excise duties before you begin importing goods

You may have started a business in a 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 lots of money and hassle. It is extremely important that you be aware of exact duty rates including vat rates if you want 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 vat have their own vat rules that need to be followed with perfect precision. As an 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 products or services in the local market.

You will first have to verify as to which of the over 14,000 classifications pertain to your specific 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 intend to import a product into the UK from Sweden where local vat is already paid then you may be eligible to reclaim that vat amount in Sweden. This would be possible if only you’re vat registered trader in the UK and supply enough documentary proof in Sweden to show 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 originating from a member EU state or other country. You should hire the services of a dependable vat agent that is not only conversant with uk vat but 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 can 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 have to issue vat invoices whilst selling your goods and services. If you intend to export those items outside of 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 crucial that you as well as your vat agent understand the latest rules so that you do not get a rude shock when your goods reach your country’s dock or airport.

It is rather crucial that you cover every aspect of your 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 related to your products so your final product costs tally exactly against your predictions as this is the only method you can start your business on firm ground.