Know your customs and excise duties before you begin importing goods

You may have started a small 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 then you can save a lot of money and hassle. It is rather essential that you be aware of exact duty rates including vat rates vatverification if you wish to extract the very 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. 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 selling your products or services in the local market.

You will first need to verify as to which of the over 14,000 classifications pertain to your specific merchandise that you intend to import into the UK. While customs duties apply to virtually all imported products, excise duties in the UK usually apply to most tobacco and alcohol products. Again, for example if you plan to import an item 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 supply enough documentary proof in Sweden to demonstrate that you have sold the item locally and also have paid vat in UK for the same.

You will thus have to know all customs and excise vat rules and rates in greater detail before starting importing and selling any services or goods imported originating from a member EU state or other country. You need to engage the services of a dependable vat agent which is not only conversant with uk vat but also be amply trained in eu vat since 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 can 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 those items outside of your country then you will also have to be conversant with export laws of your own plus 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 understand the latest rules so that you avoid getting a rude shock whenever your goods reach your country’s dock or airport.

It is extremely crucial 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 your final product costs tally exactly against your predictions as this is the only method you can start your enterprise on firm ground.