Know your customs and excise duties before you start importing goods

You may have started a small business in an EU country that involves importing goods or even services to your country but if your know your customs and excise duties before you begin importing goods you’ll be able to save a lot of money and hassle. It is rather important that you be aware of exact duty rates including vat rates if you wish to extract the very best profits from your sales, and purchases.

Each country possesses its own specific customs and excise rules, and countries which have adopted vat or vat have their own vat rules that should 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 have to verify as to which of the over 14,000 classifications pertain to your specific merchandise that you intend to import to the UK. While customs duties apply to almost 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 may be eligible to reclaim that vat amount in Sweden. This may be possible if only you are a vat registered trader in the UK and provide enough documentary proof in Sweden to demonstrate that you have sold the product 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 greater 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 trusted vat agent that is not only conversant with uk vat but also be well versed in eu vat since you will have to apply 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 understand them.

Once you get your 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’ll also need to be conversant with export laws of your own plus 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 or services so your final product costs tally exactly against your predictions since this is the only method you could start your enterprise on firm ground.