Know your customs and excise duties before you start importing goods

You may have started a small business in a EU country that involves importing goods and even services into your country yet, if you know your customs and excise duties before you start importing goods you’ll be able to 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 best profits out of your sales, and purchases.

Each country has its own specific customs and excise rules, and countries that have adopted vat or vat 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 following hmrc vat rules for import as well as selling your goods and services in the local market.

You will first have to verify as to which of the over 14,000 classifications pertain to your specific product that you plan 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 example if you intend to import an item to 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 only if you’re vat registered trader in the UK and provide enough documentary proof in Sweden to show that you’ve sold the product 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 you start importing and selling any services or goods imported from a member EU state or any other country. You need to engage the services of a dependable vat agent which is not only conversant with uk vat but will also be well versed in eu vat as you will have to apply for vat refund in the country of origin while filing vat returns on a regular basis in your own country. There are also certain custom duties and vat exemptions that can help you save on taxes but as long as you understand them.

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

It is rather crucial that you cover all aspects of one’s business including purchase, sales, and all related duties and taxes before you decide to actually implement your plans. This move includes scrutinizing all customs and excise duties relevant to your products so your final product costs tally exactly against your predictions since this is the only way you can start your business on firm ground.