Know your customs and excise duties before you start importing goods

You may have started a business in a EU country that involves importing goods or even services to your country but if your know your customs and excise duties before you start importing goods you’ll be able to save lots of money and hassle. It is rather essential that you be aware of exact duty rates including vat rates if you wish to extract the best profits out of your sales, and purchases.

Each country possesses its own specific customs and excise rules, and countries which have adopted vat or value added tax also have their own vat rules that should be followed with perfect precision. As an example in case your import business is based 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 selling your goods and services in the local market.

You will first need to verify as to which of the over 14,000 classifications pertain to your specific merchandise that you plan to import into the UK. While customs duties apply to virtually all imported products, excise duties in the united kingdom usually apply to most tobacco and alcohol products. Again, for instance if you intend to import a product to the UK from Sweden where local vat is already paid then you may be eligible to reclaim that vat amount in Sweden. This would be possible if only you’re vat registered trader in the united kingdom and supply enough documentary proof in Sweden to show that you have sold the item locally and have paid vat in UK for the same.

You’ll thus need to know all customs and excise vat rules and rates in greater detail before you start importing and selling any services or goods imported originating from a member EU state or other country. You should engage the services of a dependable vat agent which is not only conversant with uk vat but 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 regularly in your own country. There are also certain custom duties and vat exemptions that can help you save on taxes but as long as you know about them.

When you get the company vat registration then you will be allotted a vat number and will need to issue vat invoices whilst selling your goods and services. If you plan 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 crucial you and your vat agent know the latest rules so that you do not get 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 so that your final product costs tally exactly against your predictions as this is the only way you can start your enterprise on firm ground.