Know your customs and excise duties before you start importing goods

You might have started a small 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 begin importing goods then you can save lots of money and hassle. It is rather essential that you be aware of exact duty rates including vat rates if you want 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 have their own vat rules that should be followed with perfect precision. As an 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 also following hmrc vat rules for import as well as selling your products or services in the local market.

You will first need to verify as to which of the over 14,000 classifications apply to your specific merchandise that you intend 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 into the UK from Sweden where local vat is already paid then you could qualify to reclaim that vat amount in Sweden. This would be possible if only you’re vat registered trader in the UK and provide enough documentary proof in Sweden to demonstrate that you have sold the item locally and have paid vat in UK for the very 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 any other country. You need to engage the services of a trusted vat agent that is not only conversant with uk vat but also be well versed in eu vat since you will need 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 can help you save on taxes but only if you understand them.

When you get your company vat registration you will then 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 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 crucial 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 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 or services so your final product costs tally exactly against your predictions since this is the only way you could start your enterprise on firm ground.