Know your customs and excise duties before you start importing goods

You might have started a business in an EU country which involves importing goods and 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 lots of money and hassle. It is rather essential that you know the exact duty rates including vat rates vatverification 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 also have their unique vat rules that need to be followed with perfect precision. As an example in case your import organization is based in the UK then you’ll 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 may first need to verify as to which of the over 14,000 classifications pertain to your particular merchandise that you plan to import to 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 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 if only you’re vat registered trader in the UK and provide enough documentary proof in Sweden to demonstrate that you’ve sold the product locally and also 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 starting importing and selling any goods or services imported originating from a member EU state or other country. You need to engage 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 apply for vat refund in the country 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 only if you know about 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 goods and services. If you plan to export those items outside of your country then you’ll also have 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 crucial that you as well as 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 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 your final product costs tally exactly against your predictions as this is the only method you can start your business on firm ground.