Know your customs and excise duties before you start importing goods

You might have started a small business in an EU country which involves importing goods and even services into your country but if your know your customs and excise duties before you begin importing goods then you can save a lot of money and hassle. It is extremely essential 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 has its own specific customs and excise rules, and countries which have adopted vat or value added tax also have their unique vat rules that need to be followed with perfect precision. For example in case your import business 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 for selling your goods and services in the local market.

You may first have to verify as to which of the over 14,000 classifications apply to your particular merchandise that you plan to import into the UK. While customs duties pertain to almost all imported products, excise duties in the UK usually apply to most tobacco and alcohol products. Again, for example if you intend to import a product to the UK from Sweden where local vat is already paid then you may be eligible to reclaim that vat amount in Sweden. This may 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 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 originating from a member EU state or any other country. You should engage the services of a dependable 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 on a regular basis in your own country. There are also certain custom duties and vat exemptions that will help you save on taxes but as long as you know about them.

Once you get the company vat registration then you will be allotted a vat number and will have to issue vat invoices whilst selling your goods and services. If you intend to export the items outside your country then you will 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 as well as your vat agent know the latest rules so that you will avoid getting a rude shock whenever your goods reach your country’s 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 relevant to your products or services so your final product costs tally exactly against your predictions since this is the only method you can start your enterprise on firm ground.