Know your customs and excise duties before you start 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 begin importing goods you’ll be able to save a lot of money and hassle. It is rather 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 possesses its own specific customs and excise rules, and countries that have adopted vat or value added tax also have their own vat rules that need to be followed with perfect precision. For example if 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 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 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 qualify to reclaim that vat amount in Sweden. This may be possible only if you’re vat registered trader in the united kingdom and provide enough documentary proof in Sweden to demonstrate that you’ve 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 greater detail before starting importing and selling any goods or services imported from a member EU state or other country. You need to engage 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 on a regular basis in your own country. There are also certain custom duties and vat exemptions that will help you save on taxes but only if you understand them.

Once you get your company vat registration then you will be allotted a vat number and will also have to issue vat invoices whilst selling your services and goods. If you plan to export the items outside 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 vital 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 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 related to your products so that your final product costs tally exactly against your predictions as this is the only way you can start your enterprise on firm ground.