Know your customs and excise duties before you begin importing goods

You might 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 begin importing goods you’ll be able to save a lot of money and hassle. It is extremely important 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 possesses its own specific customs and excise rules, and countries that have adopted vat or vat also have their unique vat rules that should be followed with perfect precision. For example if your import organization is located in the UK then you’ll have 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 products or services in the local market.

You may first have to verify as to which of the over 14,000 classifications apply to your particular product that you plan to import into the UK. While customs duties pertain to almost 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 may be eligible to reclaim that vat amount in Sweden. This may be possible only if you’re vat registered trader in the UK and provide enough documentary proof in Sweden to show that you’ve sold the item locally and have paid vat in UK for the same.

You will thus need to know all customs and excise vat rules and rates in detail before you start importing and selling any services or goods imported originating from a member EU state or any other country. You should engage the services of a dependable vat agent that is not only conversant with uk vat but will also be amply trained 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 can help you save on taxes but as long as you know about them.

When you get your 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 those items outside your country then you will 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 and your vat agent know the latest rules so that you will avoid getting a rude shock when your goods reach your country’s 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 so that your final product costs tally exactly against your predictions as this is the only method you can start your business on firm ground.