Know your customs and excise duties before you start importing goods

You might have started a business in a EU country that involves importing goods and even services into your country yet, if you know your customs and excise duties before you begin importing goods then you can save a lot of money and hassle. It is rather essential 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 own vat rules that should be followed with perfect precision. As an example in case your import organization is located in the UK then you’ll 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 goods and services in the local market.

You will first need to verify regarding which of the over 14,000 classifications apply to your particular merchandise that you plan to import to 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 an item into the UK from Sweden where local vat has already been paid then you could qualify 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 demonstrate that you’ve sold the product locally and have paid vat in UK for the same.

You’ll thus have to know all customs and excise vat rules and rates in greater detail before starting importing and selling any services or goods imported from a member EU state or other country. You need to engage the services of a trusted vat agent that is not only conversant with uk vat but will also be amply trained in eu vat as you will have 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 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 intend 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 vital you as well as 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 crucial that you cover all aspects of your 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 related to your products or services so your final product costs tally exactly against your predictions as this is the only way you can start your enterprise on firm ground.