Know your customs and excise duties before you begin importing goods

You might have started a business in an EU country that involves importing goods and 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 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 out of your sales, and purchases.

Each country www.vatvalidation.com/vat possesses its own specific customs and excise rules, and countries which have adopted vat or value added tax have their own vat rules that should be followed with perfect precision. For example if your import business is based 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 selling your products or 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 plan to import into the UK. While customs duties apply to almost all imported products, excise duties in the UK usually apply to most tobacco and alcohol products. Again, for example if you intend to import a product 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 only if you are a vat registered trader in the united kingdom 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 have 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 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 need to apply 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 will help you save on taxes but only if you know about them.

Once you get the 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 of your country then you will also need to be conversant with export laws of your plus 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 know the latest rules so that you avoid getting a rude shock whenever your goods reach your country’s dock or airport.

It is rather 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 related to your products or services so your final product costs tally exactly against your predictions as this is the only way you can start your enterprise on firm ground.