Know your customs and excise duties before you begin importing goods

You might have started a business in a EU country which involves importing goods or 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 lots of money and hassle. It is extremely important that you be aware of exact duty rates including vat rates if you want to extract the best profits out of your sales, and purchases.

Each country www.vatvalidation.com/vat possesses its own specific customs and excise rules, and countries that have adopted vat or value added tax have their unique vat rules that need to be followed with perfect precision. For example in case your import organization is based 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 selling your goods and services in the local market.

You will first have to verify as to which of the over 14,000 classifications apply to your specific merchandise that you intend to import to 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 plan to import an item to the UK from Sweden where local vat is already paid then you could be eligible to reclaim that vat amount in Sweden. This would be possible if only you are a vat registered trader in the UK and supply enough documentary proof in Sweden to demonstrate that you’ve sold the item locally and have paid vat in UK for the very 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 need to hire the services of a trusted vat agent that is not only conversant with uk vat but will also be amply trained in eu vat since you will have to apply for vat refund in the nation of origin while filing vat returns regularly 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 also need to issue vat invoices whilst selling your services and goods. If you plan to export those items outside of 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 do not get a rude shock whenever your goods reach your country’s dock or airport.

It is extremely 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 related to your products so your final product costs tally exactly against your predictions since this is the only method you can start your enterprise on firm ground.