Know your customs and excise duties before you begin importing goods

You may have started a business in a EU country which involves importing goods and even services into 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 extremely essential that you know the exact duty rates including vat rates if you want to extract the very best profits out of your sales, and purchases.

Each country has its own specific customs and excise rules, and countries which have adopted vat or vat also have their unique vat rules that should 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 following hmrc vat rules for import as well as selling your goods and services in the local market.

You will first need to verify as to which of the over 14,000 classifications apply to your particular product that you intend to import to 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 example if you plan to import a product into 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're vat registered trader in the UK and supply enough documentary proof in Sweden to demonstrate that you have sold the item locally and have paid vat in UK for the very same.

You'll 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 any other country. You should hire the services of a trusted vat agent which is not only conversant with uk vat but also be amply trained in eu vat as you will have to make an application 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 can help you save on taxes but as long as you know about them.

Once you get your company vat registration then you will be allotted a vat number and will also have to issue vat invoices whilst selling your goods and services. 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 that you as well as 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 extremely vital that you cover all aspects of your business including purchase, sales, and all sorts of related duties and taxes before you actually implement your plans. This move includes scrutinizing all customs and excise duties relevant to your products or services so that your final product costs tally exactly against your predictions as this is the only method you could start your business on firm ground.