Know your customs and excise duties before you start importing goods

You may have started a business in an EU country which involves importing goods and even services into your country yet, if you know your customs and excise duties before you begin importing goods then you can save lots of money and hassle. It is rather important that you know the exact duty rates including vat rates if you wish to extract the very best profits from your sales, and purchases.

Each country has its own specific customs and excise rules, and countries that have adopted vat or vat also have their own vat rules that need to be followed with perfect precision. For example if your import organization is based in the UK then you will 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 will first need to verify as to which of the over 14,000 classifications pertain to your specific product 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 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 may be possible only if you are a vat registered trader in the UK and provide enough documentary proof in Sweden to show that you have 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 you start importing and selling any services or goods imported originating 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 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 on a regular basis 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.

Once you get your 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 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 vital 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 extremely crucial that you cover all aspects of one’s 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 related to your products or services so your final product costs tally exactly against your predictions since this is the only way you can start your enterprise on firm ground.