Know your customs and excise duties before you start importing goods

You may have started a small business in a EU country which involves importing goods and even services to your country yet, if you 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 extremely important that you know the exact duty rates including vat rates if you want 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 value added tax 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’ll need 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 product that you plan to import to the UK. While customs duties pertain to almost all imported products, excise duties in the united kingdom usually apply to most tobacco and alcohol products. Again, for instance 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 if only you are a vat registered trader in the UK 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 have to know all customs and excise vat rules and rates in detail before starting importing and selling any services or goods imported from a member EU state or other country. You need to engage the services of a trusted vat agent which is not only conversant with uk vat but will also be amply trained in eu vat as you will need 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 only if you know about 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’ll also have 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 crucial you as well as 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 extremely vital that you cover all aspects of your business including purchase, sales, and all 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 so your final product costs tally exactly against your predictions as this is the only method you could start your enterprise on firm ground.