Know your customs and excise duties before you begin importing goods

You may have started a business in a EU country that involves importing goods or even services into your country but if your know your customs and excise duties before you start importing goods then you can save lots of money and hassle. It is rather important that you know the exact duty rates including vat rates if you wish 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 vat have their unique vat rules that should be followed with perfect precision. For example in case your import organization is located in the UK then you’ll have to follow hm customs and excise rules while importing your goods while following hmrc vat rules for import as well as for selling your products or services in the local market.

You may first need to verify regarding which of the over 14,000 classifications pertain to your specific merchandise that you plan to import into 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 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 may be possible if only you’re vat registered trader in the UK and supply enough documentary proof in Sweden to show that you have sold the product locally and have paid vat in UK for the very same.

You will thus have to know all customs and excise vat rules and rates in greater detail before you start importing and selling any goods or services imported originating from a member EU state or other country. You should hire the services of a trusted vat agent that is not only conversant with uk vat but also be amply trained in eu vat since you will have 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 you will then be allotted a vat number and will also need to issue vat invoices whilst selling your services and goods. If you plan to export those items outside 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 vital that you as well as your vat agent understand the latest rules so that you will do not get a rude shock when your goods reach your country‚Äôs dock or airport.

It is extremely 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 or services so that your final product costs tally exactly against your predictions as this is the only way you can start your business on firm ground.