Know your customs and excise duties before you begin importing goods

You may have started a business in a EU country which involves importing goods or even services to your country but if your know your customs and excise duties before you start importing goods you’ll be able to save a lot of money and hassle. It is rather 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 has its own specific customs and excise rules, and countries which have adopted vat or value added tax have their own vat rules that should be followed with perfect precision. For example if your import organization is based 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 as to which of the over 14,000 classifications pertain to your specific merchandise that you plan to import into 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 intend to import a product into the UK from Sweden where local vat has already been paid then you could be eligible to reclaim that vat amount in Sweden. This may be possible if only you’re vat registered trader in the united kingdom and provide enough documentary proof in Sweden to show that you’ve sold the product locally and have paid vat in UK for the very 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 any other country. You need to hire the services of a trusted vat agent that is not only conversant with uk vat but also be well versed in eu vat as you will have to make an application 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 will help you save on taxes but as long as 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 goods and services. If you intend to export those items outside of your country then you’ll also need to be conversant with export laws of your plus the destination country. Since vat customs and excise rules and rates keep changing at regular intervals it is vital that you as well as your vat agent understand the latest rules so that you avoid getting a rude shock whenever your goods reach your country‚Äôs 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 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 as this is the only method you could start your business on firm ground.