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 or even services into your country yet, if you know your customs and excise duties before you begin importing goods then you can save a lot of money and hassle. It is rather essential that you know the exact duty rates including vat rates vatverification 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 which have adopted vat or value added tax have their own vat rules that need to be followed with perfect precision. For example in case your import organization is based in the UK then you will have to follow hm customs and excise rules while importing your goods while following hmrc vat rules for import as well as for selling your products or services in the local market.

You will first need to verify regarding which of the over 14,000 classifications apply to your specific merchandise 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 instance if you plan to import an item into 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 only if you are a vat registered trader in the united kingdom and provide enough documentary proof in Sweden to demonstrate 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 greater detail before starting 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 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 country 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 know about them.

Once you get your company vat registration you will then 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 your country then you’ll 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 vital you as well as your vat agent understand the latest rules so that you will avoid getting a rude shock whenever your goods reach your country‚Äôs dock or airport.

It is extremely vital 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 relevant to your products so that your final product costs tally exactly against your predictions as this is the only method you could start your business on firm ground.