Know your customs and excise duties before you start importing goods

You may have started a business in an 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 then you can save a lot of money and hassle. It is rather important that you know the exact duty rates including vat rates if you wish to extract the very best profits out of your sales, and purchases.

Each country possesses its own specific customs and excise rules, and countries that have adopted vat or value added tax also have their unique vat rules that should be followed with perfect precision. For example if your import organization is based 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 have to verify regarding which of the over 14,000 classifications apply to your particular merchandise that you intend to import to the UK. While customs duties apply to virtually all imported products, excise duties in the UK usually apply to most tobacco and alcohol products. Again, for instance if you intend to import a product into the UK from Sweden where local vat is already paid then you may qualify to reclaim that vat amount in Sweden. This would be possible only if you are a vat registered trader in the united kingdom and supply 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 greater 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 trusted vat agent which is not only conversant with uk vat but also be well versed 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. There are also certain custom duties and vat exemptions that will help you save on taxes but only if you know about them.

When you get the company vat registration you will then be allotted a vat number and will also have to issue vat invoices whilst selling your goods and services. If you plan to export those items outside of your country then you’ll also need to be conversant with export laws of your own as well as the destination country. Since vat customs and excise rules and rates keep changing at regular intervals it is crucial that 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‚Äôs dock or airport.

It is extremely vital that you cover all aspects of one’s 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 related to your products so your final product costs tally exactly against your predictions as this is the only method you could start your enterprise on firm ground.