Know your customs and excise duties before you start importing goods

You may have started a small business in an EU country which involves importing goods and even services into your country but if your know your customs and excise duties before you start importing goods then you can save lots of money and hassle. It is extremely important that you be aware of 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 value added tax have their unique vat rules that should be followed with perfect precision. For example in case your import business 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 goods and services in the local market.

You may first have to verify as to which of the over 14,000 classifications apply to your specific merchandise 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 an item into the UK from Sweden where local vat has already been paid then you could qualify 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 show that you have sold the product 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 you start importing and selling any services or goods imported originating from a member EU state or any other country. You need to hire 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 have to apply for vat refund in the country of origin while filing vat returns regularly in your own country. Additionally, there are certain custom duties and vat exemptions that can help you save on taxes but only if you understand them.

When you get your company vat registration then you will 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 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 vital you and 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 extremely crucial that you cover all aspects of one’s business including purchase, sales, and all 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 as this is the only way you can start your business on firm ground.

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