Know your customs and excise duties before you begin importing goods

You might have started a small business in a EU country that involves importing goods or 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 lots of money and hassle. It is rather essential that you know the exact duty rates including vat rates if you wish to extract the best profits out of your sales, and purchases.

Each country has its own specific customs and excise rules, and countries that have adopted vat or value added tax have their own vat rules that need to be followed with perfect precision. As an example if your import organization is located in the UK then you will need to follow hm customs and excise rules while importing your goods while also following hmrc vat rules for import as well as selling your products or services in the local market.

You may first need to verify regarding which of the over 14,000 classifications pertain to your specific product that you plan to import into the UK. While customs duties pertain to almost all imported products, excise duties in the UK 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 may be possible if only you’re vat registered trader in the UK and supply enough documentary proof in Sweden to show 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 services or goods imported originating from a member EU state or any other country. You need to 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. There are also 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 the items outside your country then you will also have 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 that you and your vat agent know the latest rules so that you will do not get a rude shock when your goods reach your country’s dock or airport.

It is extremely crucial that you cover every aspect 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 relevant to your products so that your final product costs tally exactly against your predictions since this is the only way you can start your business on firm ground.