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 or even services to your country yet, if you know your customs and excise duties before you start importing goods then you can save a lot of money and hassle. It is rather important that you be aware of exact duty rates including vat rates if you wish to extract the very best profits from your sales, and purchases.

Each country has its own specific customs and excise rules, and countries that have adopted vat or value added tax have their unique vat rules that need to be followed with perfect precision. For example in case your import business is located in the UK then you will have 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 have to verify as to which of the over 14,000 classifications apply to your particular product that you plan to import to the UK. While customs duties apply to almost all imported products, excise duties in the united kingdom usually apply to most tobacco and alcohol products. Again, for example if you plan 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 would be possible if only you are a vat registered trader in the united kingdom and provide enough documentary proof in Sweden to show that you have sold the product locally and have paid vat in UK for the same.

You’ll thus have 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 other country. You need to engage the services of a dependable vat agent which is not only conversant with uk vat but will also be amply trained in eu vat as you will need to apply for vat refund in the nation of origin while filing vat returns regularly 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 then you will be allotted a vat number and will have to issue vat invoices whilst selling your goods and services. If you plan to export the items outside of 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 you and your vat agent know the latest rules so that you will do not get a rude shock when your goods reach your country’s dock or airport.

It is extremely crucial that you cover all aspects of your business including purchase, sales, and all 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 so your final product costs tally exactly against your predictions since this is the only method you can start your enterprise on firm ground.