Know your customs and excise duties before you begin importing goods

You might have started a small 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 then you can save lots of money and hassle. It is extremely essential that you know the exact duty rates including vat rates if you want to extract the very best profits from 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 own vat rules that need to be followed with perfect precision. As an example if your import organization is based in the UK then you’ll need to follow hm customs and excise rules while importing your goods while also following hmrc vat rules for import as well as for selling your goods and services in the local market.

You will first have to verify regarding which of the over 14,000 classifications apply to your specific product that you plan to import into the UK. While customs duties pertain to virtually all imported products, excise duties in the united kingdom usually apply to most tobacco and alcohol products. Again, for example if you intend to import an item into the UK from Sweden where local vat is already paid then you may be eligible to reclaim that vat amount in Sweden. This would be possible only if you’re vat registered trader in the united kingdom and supply enough documentary proof in Sweden to show that you’ve sold the item locally and also have paid vat in UK for the 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 dependable vat agent that is not only conversant with uk vat but also be amply trained in eu vat since you will need 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 will help you save on taxes but only if you understand them.

Once you get your company vat registration you will then be allotted a vat number and will have to issue vat invoices whilst selling your goods and services. If you plan to export the items outside your country then you will also have 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 vital you and your vat agent know the latest rules so that you avoid getting a rude shock when your goods reach your country’s dock or airport.

It is rather crucial that you cover every aspect 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 relevant to your products or services so that your final product costs tally exactly against your predictions since this is the only way you can start your enterprise on firm ground.