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 to your country yet, if you know your customs and excise duties before you begin importing goods you’ll be able to save lots of money and hassle. It is rather essential that you be aware of exact duty rates including vat rates if you wish to extract the best profits from your sales, and purchases.

Each country possesses its own specific customs and excise rules, and countries that have adopted vat or vat have their unique vat rules that need to be followed with perfect precision. As an 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 following hmrc vat rules for import as well as for selling your products or services in the local market.

You may first have to verify regarding which of the over 14,000 classifications pertain to your particular product 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 instance if you plan to import a product to the UK from Sweden where local vat has already been paid then you could be eligible to reclaim that vat amount in Sweden. This would be possible only if you’re vat registered trader in the united kingdom and supply enough documentary proof in Sweden to demonstrate that you have sold the item locally and also 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 services or goods imported from a member EU state or other country. You should hire the services of a dependable vat agent which is not only conversant with uk vat but will also be amply trained in eu vat since you will have to make an application 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 will help you save on taxes but as long as you understand them.

When 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 goods and services. If you intend to export the items outside your country then you’ll also have 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 and your vat agent know the latest rules so that you do not get a rude shock whenever your goods reach your country‚Äôs dock or airport.

It is rather crucial that you cover all aspects 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 related to your products or services so that your final product costs tally exactly against your predictions since this is the only method you can start your business on firm ground.