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 and even services into your country but if your know your customs and excise duties before you start importing goods then you can save lots of money and hassle. It is extremely important that you know the exact duty rates including vat rates if you want to extract the best profits from your sales, and purchases.

Each country possesses its own specific customs and excise rules, and countries that have adopted vat or value added tax have their unique vat rules that should 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 goods and services in the local market.

You will first need to verify regarding which of the over 14,000 classifications apply to your specific product that you plan to import into the UK. While customs duties pertain to virtually all imported products, excise duties in the united kingdom usually apply to most tobacco and alcohol products. Again, for example if you intend to import a product to the UK from Sweden where local vat has already been paid then you could qualify to reclaim that vat amount in Sweden. This would be possible if only you’re vat registered trader in the UK and provide enough documentary proof in Sweden to demonstrate that you have sold the product locally and also 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 services or goods imported from a member EU state or other country. You need to hire the services of a trusted 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. Additionally, there are certain custom duties and vat exemptions that will help you save on taxes but as long as you know about them.

When 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 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 know the latest rules so that you avoid getting a rude shock when your goods reach your country‚Äôs dock or airport.

It is extremely vital 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 relevant to your products or services so that your final product costs tally exactly against your predictions since this is the only method you can start your enterprise on firm ground.