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 but if your know your customs and excise duties before you begin importing goods then you can save lots of money and hassle. It is extremely important that you be aware of exact duty rates including vat rates if you wish to extract the very 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 value added tax also have their own vat rules that need to be followed with perfect precision. For example in case your import organization is based in the UK then you’ll have to follow hm customs and excise rules while importing your goods while also following hmrc vat rules for import as well as for 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 specific product that you plan to import into 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 plan to import a product into the UK from Sweden where local vat has already been paid then you may qualify to reclaim that vat amount in Sweden. This would be possible if only you are a vat registered trader in the united kingdom and supply enough documentary proof in Sweden to demonstrate that you have sold the item locally and have paid vat in UK for the very same.

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

Once you get the company vat registration then you will 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’ll 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 you as well as your vat agent know the latest rules so that you do not get a rude shock when your goods reach your country’s dock or airport.

It is extremely crucial 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 your final product costs tally exactly against your predictions since this is the only method you can start your business on firm ground.