Know your customs and excise duties before you begin importing goods

You may have started a business in an EU country which involves importing goods or even services into your country but if your know your customs and excise duties before you start importing goods you’ll be able to save lots of money and hassle. It is extremely essential that you know the exact duty rates including vat rates if you wish 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 value added tax 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 will need to follow hm customs and excise rules while importing your goods while also following hmrc vat rules for import as well as selling your products or services in the local market.

You will first need to verify as to which of the over 14,000 classifications pertain to your specific product that you intend to import to the UK. While customs duties pertain to virtually all imported products, excise duties in the UK usually apply to most tobacco and alcohol products. Again, for instance if you plan to import a product 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 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 also have paid vat in UK for the same.

You’ll 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 hire the services of a dependable 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 regularly 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 know about them.

Once 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 plan to export the items outside of your country then you will also need 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 you as well as your vat agent know the latest rules so that you avoid getting a rude shock when your goods reach your country’s dock or airport.

It is extremely vital 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 or services so that your final product costs tally exactly against your predictions as this is the only method you can start your enterprise on firm ground.