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Know your customs and excise duties before you start importing goods

You might have started a business in an EU country that involves importing goods or even services into your country but if your know your customs and excise duties before you start importing goods then you can save a lot of money and hassle. It is extremely important that you know the exact duty rates including vat rates if you want to extract the best profits out of your sales, and purchases too.

Each country has its own specific customs and excise rules, and countries that have adopted vat or value added tax also have their own vat rules that need to be followed with perfect precision. For example if 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 for 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 plan to import into the UK. While customs duties apply 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 has already been 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 supply enough documentary proof in Sweden to show that you have sold the product locally and have paid vat in UK for the same.

You will thus need to know all customs and excise vat rules and rates in detail before you start importing and selling any goods or services imported from a member EU state or any other country. You should engage the services of a trusted vat agent that is not only conversant with uk vat but also well versed in eu vat since you will need 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 can help you save on taxes but only if you know about them.

Once you get your company vat registration then you will be allotted a vat number and will also need to issue vat invoices whilst selling your goods and services. If you plan 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 and your vat agent know the latest rules so that you do not get a rude shock when 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 related duties and taxes before you actually implement your plans. This move includes scrutinizing all customs and excise duties related to your products so that your final product costs tally exactly against your predictions since this is the only way you can start your business on firm ground.