Know your customs and excise duties before you begin importing goods

You might have started a small business in an EU country that involves importing goods and even services into your country but if your know your customs and excise duties before you start importing goods you’ll be able to save a lot of money and hassle. It is extremely important 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 has its own specific customs and excise rules, and countries which have adopted vat or vat have their own vat rules that should be followed with perfect precision. For example if 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 selling your goods and services in the local market.

You may first need to verify regarding which of the over 14,000 classifications pertain to your specific product that you intend 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 plan to import an item to the UK from Sweden where local vat is already paid then you may qualify to reclaim that vat amount in Sweden. This may be possible if only you are a vat registered trader in the UK and supply enough documentary proof in Sweden to demonstrate that you’ve sold the item locally and have paid vat in UK for the very same.

You’ll thus have to know all customs and excise vat rules and rates in greater detail before starting importing and selling any goods or services imported from a member EU state or other country. You should engage the services of a dependable vat agent that is not only conversant with uk vat but also be amply trained in eu vat as you will have to make an application for vat refund in the nation of origin while filing vat returns regularly in your own country. Additionally, there are certain custom duties and vat exemptions that will help you save on taxes but as long as you understand them.

Once you get the 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 intend to export the items outside of your country then you’ll also need 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 vital that you as well as your vat agent know the latest rules so that you do not get a rude shock when your goods reach your country‚Äôs dock or airport.

It is rather vital that you cover all aspects of your business including purchase, sales, and all related duties and taxes before you 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 since this is the only method you could start your business on firm ground.