Know your customs and excise duties before you begin importing goods

You may have started a small business in an EU country that involves importing goods and even services to your country yet, if you know your customs and excise duties before you start importing goods then you can save lots of money and hassle. It is rather essential 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 that have adopted vat or value added tax have their unique vat rules that should be followed with perfect precision. For example if your import business is located in the UK then you’ll need to follow hm customs and excise rules while importing your goods while following hmrc vat rules for import as well as 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 particular merchandise that you plan to import into 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 intend to import a product to the UK from Sweden where local vat is already paid then you may qualify to reclaim that vat amount in Sweden. This may be possible only if you’re vat registered trader in the united kingdom and provide enough documentary proof in Sweden to show 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 greater detail before you start importing and selling any services or goods imported originating from a member EU state or other country. You should hire 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 have to apply for vat refund in the country 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 your company vat registration you will then be allotted a vat number and will also have to issue vat invoices whilst selling your services and goods. If you intend to export the items outside of your country then you will also need 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 as well as your vat agent understand the latest rules so that you will avoid getting a rude shock when your goods reach your country’s dock or airport.

It is rather 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 related 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 business on firm ground.