Know your customs and excise duties before you start importing goods

You may have started a business in a EU country which 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 rather essential that you know the 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 that have adopted vat or vat also have their unique vat rules that need to be followed with perfect precision. As an example if your import organization is based in the UK then you will need 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 will first have to verify regarding which of the over 14,000 classifications pertain to your specific product that you plan to import to the UK. While customs duties pertain to virtually 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 has already been paid then you could 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 show that you’ve sold the product locally and have paid vat in UK for the same.

You will thus need to know all customs and excise vat rules and rates in detail before you start importing and selling any goods or services imported from a member EU state or other country. You should 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 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 will help you save on taxes but only if you understand them.

When 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 plan to export those items outside your country then you’ll 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 vital that you and your vat agent know the latest rules so that you will do not get a rude shock whenever 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 relevant to your products so that your final product costs tally exactly against your predictions as this is the only method you can start your enterprise on firm ground.