Decipher customs and excise vat duties to improve your earnings
If you’re planning to import goods into any country including EU States then you need to stay up to date with customs & excise rules in your import business. You will certainly have to pay customs or excise duties, and others, on the
products which you import in your country, based on current rules.
In case you are merely a business traveler bringing in a few duty free products into your country then you definitely might not need to pay any duties on those items. However, should you start a business with plans on importing goods in your country with the intention of selling these to your customers then you will have to pay customs and excise duties on many products, except people that have been exempted from such duties. For instance if you plan to begin importing goods into the UK then you’ll need to pay customs & excise duties along with collecting and payment of vat or value added tax too, provided you have crossed the threshold limit set by the hmrc vat department. Additionally, you will have to abide by the guidelines set by the hm customs and excise vat department.
The UK’s customs and excise department has over 14,000 classifications that specify the exact amount of customs duties applicable on each type of product. You should verify the classification that fits your products for precise cost calculation for your product. If your merchandise that you intend to import comes from another EU country where vat was already paid then you can certainly also obtain a vat refund when you import it in the UK and sell it by using a vat invoice. In order to achieve this goal, you will need to get vat registered using the hmrc vat department, file for a vat refund in the country of origin of the product and then wait for a designated time before a vat refund is awarded to your account.
In the event you plan to import cigarettes, cigars, or any other tobacco products, or certain types of alcohol to the UK however ,, you’ll be required to pay excise duty on those products. Certain goods and services imported from EU States also attract import vat duty. You will have to hire the services of a reliable vat agent to deal with your vat returns and refunds, and acquire all necessary clarifications on all of the latest modifications in vat customs and excise rules.
If you’re a vat registered dealer you will need to collect vat from your clients when you issue a vat invoice. Different countries in the EU have different vat rules that need to be followed. For example if you need to make application for a vat reclaim for products sourced from Poland then you’ll really need to produce a faktura vat or vat invoice in Polish before you can do it. Any local vat agent is normally the best ally when this occurs.
If you plan to import goods or services in your country from other countries worldwide or from other EU countries then you’ll certainly have to know all the information on customs, excise and vat duties on import and sale of the products or services. This will assist avoid double taxation and prevent you from running afoul on import rules and regulations set up by the country. You should certainly stay abreast of customs & excise rules as part of your import business if you want to spend less legally while increasing your profits on sales all at once.