Know your customs and excise duties before you begin importing goods

You might have started a small business in a EU country that 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 know the exact duty rates including vat rates if you want to extract the best profits out of 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. For example in case your import organization is based in the UK then you will have to follow hm customs and excise rules while importing your goods while following hmrc vat rules for import as well as for selling your products or services in the local market.

You may first need to verify as to which of the over 14,000 classifications pertain to your specific product that you plan to import to the UK. While customs duties apply to virtually all imported products, excise duties in the UK usually apply to most tobacco and alcohol products. Again, for example if you plan to import a product to the UK from Sweden where local vat is already paid then you may qualify to reclaim that vat amount in Sweden. This would be possible only if you are a vat registered trader in the united kingdom and provide enough documentary proof in Sweden to demonstrate 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 detail before you start importing and selling any services or goods imported originating from a member EU state or other country. You need to engage the services of a dependable vat agent that is not only conversant with uk vat but also be well versed in eu vat as you will have to apply for vat refund in the country of origin while filing vat returns on a regular basis in your own country. There are also certain custom duties and vat exemptions that will help you save on taxes but only if you understand 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 services and goods. If you intend to export those items outside of your country then you will 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 and your vat agent understand the latest rules so that you avoid getting a rude shock whenever your goods reach your country’s dock or airport.

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