Decipher customs and excise vat duties to enhance your earnings
If you are planning to import goods into any country including EU States then you need to stay up to date with customs & excise rules as part of your import business. You will certainly have to pay customs or excise duties, and others, for the
products which you import in your country, according to current rules.
In case you are just a business traveler bringing in a couple of duty free products into your country then you definitely probably won’t need to pay any duties on those things. However, if you start a business with intentions of 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 those that have been exempted from such duties. For example if you intend to begin importing goods in the UK then you will have 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. You will also have to abide by the rules set by the hm customs and excise vat department.
The UK’s customs and excise department has over 14,000 classifications that specify the precise amount of customs duties applicable on each type of product. You should verify the classification that suits your products for precise cost calculation for your product. If your merchandise that you intend to import is from another EU country where vat has already been paid then you can certainly also obtain a vat refund once 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 with the hmrc vat department, apply 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 you.
In the event you want to import cigarettes, cigars, or any other cigarettes and tobacco products, or certain types of alcohol to the UK then again, you will be needed to pay excise duty on those products. Certain goods and services imported from EU States also attract import vat duty. You will need to hire the services of a reliable vat agent to deal with your vat returns and refunds, and acquire all necessary clarifications on all the latest changes in vat customs and excise rules.
If you’re a vat registered dealer then you will need to collect vat from the clients when you issue a vat invoice. Different countries within the EU have different vat rules that should be followed. For instance if you need to apply for a vat reclaim for products sourced from Poland then you will need to deliver a faktura vat or vat invoice in Polish before you can do so. A local vat agent will be your best ally in such a case.
If you plan to import services or goods in your country from other countries around the world or from other EU countries then you’ll certainly have to know all the required details on customs, excise and vat duties on import and sale of your services or products. This will assist avoid double taxation and prevent you from running afoul on import regulations and rules put in place by your country. You must certainly stay up to date with customs & excise rules in your import business if you wish to spend less legally while boosting your profits on sales all at once.