Know your customs and excise duties before you begin importing goods

You might have started a business in a EU country which involves importing goods or even services into your country but if your know your customs and excise duties before you begin importing goods you'll be able to save lots of money and hassle. It is rather important that you know the exact duty rates including vat rates if you wish to extract the very best profits from your sales, and purchases.

Each country has its own specific customs and excise rules, and countries which have adopted vat or value added tax have their unique vat rules that should be followed with perfect precision. For example if your import organization is based in the UK then you'll have 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 will first need to verify regarding which of the over 14,000 classifications pertain to your specific product that you intend 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 example if you plan 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 UK 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 same.

You'll thus need 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 any other country. You should engage the services of a dependable vat agent that is not only conversant with uk vat but 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 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 have to issue vat invoices whilst selling your goods and services. If you intend to export the items outside of your country then you will also have to be conversant with export laws of your as well as 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 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 your 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 relevant to your products or services so your final product costs tally exactly against your predictions as this is the only method you can start your enterprise on firm ground.