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 or even services to 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 extremely essential 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 possesses its own specific customs and excise rules, and countries which have adopted vat or vat also have their own vat rules that need to be followed with perfect precision. For example in case your import business is based in the UK then you will 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 may first have to verify regarding which of the over 14,000 classifications apply to your particular merchandise 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 instance if you intend to import a product to the UK from Sweden where local vat is already paid then you could be eligible to reclaim that vat amount in Sweden. This would be possible only if you are a vat registered trader in the united kingdom and supply enough documentary proof in Sweden to demonstrate that you’ve sold the item locally and have paid vat in UK for the very same.

You’ll thus need to know all customs and excise vat rules and rates in detail before you start 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 also be well versed in eu vat since you will need to apply for vat refund in the country 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 only if you know about them.

When you get your company vat registration then you will be allotted a vat number and will need to issue vat invoices whilst selling your goods and services. If you intend 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 vital that you and your vat agent know 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 vital that you cover all aspects of one’s business including purchase, sales, and all 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 that your final product costs tally exactly against your predictions since this is the only method you can start your business on firm ground.