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 and even services into your country yet, if you know your customs and excise duties before you start importing goods you’ll be able to save lots of money and hassle. It is extremely essential that you be aware of exact duty rates including vat rates if you want to extract the very best profits from your sales, and purchases.

Each country has its own specific customs and excise rules, and countries which have adopted vat or vat also 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 products or services in the local market.

You will first need to verify as to which of the over 14,000 classifications apply to your specific 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 example if you plan to import an item 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 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 very same.

You will thus have to know all customs and excise vat rules and rates in detail before you start importing and selling any services or goods imported from a member EU state or other country. You need to engage the services of a trusted vat agent which 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 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 can help you save on taxes but only if you understand them.

Once 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 the items outside of your country then you will also have to be conversant with export laws of your as well as 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 avoid getting a rude shock whenever your goods reach your country’s dock or airport.

It is rather vital that you cover every aspect of one’s 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 or services so your final product costs tally exactly against your predictions as this is the only method you can start your business on firm ground.