Know your customs and excise duties before you begin importing goods

You may have started a small business in a EU country that involves importing goods and even services to your country but if your know your customs and excise duties before you start importing goods then you can save a lot of money and hassle. It is extremely essential that you know the exact duty rates including vat rates if you want to extract the very best profits out of your sales, and purchases.

Each country has its own specific customs and excise rules, and countries which have adopted vat or vat have their unique vat rules that need to be followed with perfect precision. For example if your import business is located 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 for 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 particular product 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 instance if you plan to import an item to 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 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 item locally and have paid vat in UK for the very same.

You’ll thus need 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 engage the services of a trusted vat agent which is not only conversant with uk vat but also be amply trained in eu vat as you will have to apply 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 can help you save on taxes but only if you know about them.

When you get the company vat registration you will then be allotted a vat number and will also need 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 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 crucial you as well as your vat agent understand the latest rules so that you do not get a rude shock when your goods reach your country‚Äôs dock or airport.

It is rather vital that you cover every aspect of your 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 relevant to your products so that your final product costs tally exactly against your predictions as this is the only method you can start your enterprise on firm ground.