Know your customs and excise duties before you start importing goods

You might have started a small business in an EU country that involves importing goods and 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 lots of money and hassle. It is rather important that you be aware of exact duty rates including vat rates if you wish to extract the very best profits from your sales, and purchases.

Each country has its own specific customs and excise rules, and countries that have adopted vat or value added tax also have their unique vat rules that need to be followed with perfect precision. For example in case your import business is located in the UK then you will need to follow hm customs and excise rules while importing your goods while following hmrc vat rules for import as well as selling your goods and services in the local market.

You may first have to verify regarding which of the over 14,000 classifications apply to your particular product that you intend to import to the UK. While customs duties pertain to almost 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 an item to 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 only if you are a vat registered trader in the UK and provide enough documentary proof in Sweden to demonstrate that you have sold the product 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 goods or services imported originating from a member EU state or other country. You need to engage the services of a dependable vat agent which is not only conversant with uk vat but also be amply trained in eu vat since 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 can help you save on taxes but only if you know about them.

When you get your company vat registration you will then be allotted a vat number and will need to issue vat invoices whilst selling your goods and services. If you plan to export the items outside of 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 crucial that you as well as your vat agent understand the latest rules so that you will avoid getting a rude shock whenever your goods reach your country‚Äôs dock or airport.

It is rather crucial 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 your final product costs tally exactly against your predictions since this is the only way you could start your business on firm ground.