Know your customs and excise duties before you begin importing goods

You may have started a business in an EU country that involves importing goods or even services into your country yet, if you 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 extremely essential that you be aware of exact duty rates including vat rates if you wish 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 value added tax have their own vat rules that should be followed with perfect precision. For example in case your import business is located in the UK then you’ll need 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 may first need to verify regarding which of the over 14,000 classifications apply to your particular merchandise that you intend to import into the UK. While customs duties pertain to almost all imported products, excise duties in the UK 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 is already paid then you may qualify to reclaim that vat amount in Sweden. This may be possible only if you are a vat registered trader in the UK and provide enough documentary proof in Sweden to show that you have sold the product locally and have paid vat in UK for the 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 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 since you will need to make an application for vat refund in the nation 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.

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 services and goods. If you intend to export the items outside of your country then you’ll also have 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 and your vat agent know the latest rules so that you do not get a rude shock whenever your goods reach your country‚Äôs dock or airport.

It is extremely crucial that you cover every aspect 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 your final product costs tally exactly against your predictions as this is the only method you can start your enterprise on firm ground.