Thinking about starting an import export business? Finding it overwhelming and stressful? Don’t worry, that is common. It can be extremely challenging starting from scratch without guidance. That is why we’ve created this guide to bring you 5 tips for importing and exporting. Here we go!

Keeping On Top Of Taxes

Firstly, when it comes to importing and exporting, VAT is a huge part and it is vital to understand this when entering the business world.

You must register for VAT if you expect your business’s annual turnover will be £81,000.00 or more. However, there are advantages to being registered. For example, you can reclaim the VAT that you pay on goods bought solely for your business.

Hiring an accountant to sort this for you is a simple solution to avoid stress. On the other hand, if you want to do it yourself, you can find plenty of information on the HMRC VAT website.

For businesses that expect their turnover to be under £81,000.00, you can register for voluntary VAT. This still allows them to reclaim VAT on goods you bought solely for your business.

Extra Advice For Exporters

After January 1st 2021, businesses aiming to export goods from Great Britain to the EU will need to ensure they’re prepared for the changes due to Brexit. Alongside this, the EU-based business you’re exporting to must be fully prepared as well. This includes having the necessary import customs declarations.

Licenses and Labelling

Once the transition period ends, certain goods will require a license to be imported or exported from Great Britain. There may also be an inspection fee for various goods before they are allowed into the UK.

For plant, animal, food and agricultural goods, the list includes:

Live animals, animal products, high-risk food and feed
Fish for human consumption
Live fish and shellfish for aquaculture and ornamental purposes
Plant and plant products
Endangered animal and plant species, and products made from them
Veterinary medicines
Wood packaging
Timber

The Importance Of Freight Forwarders

A huge part of importing and exporting is knowing how to use freight forwarders. Once your business grows, you’ll likely outgrow the post office, meaning with larger shipment sizes, you’ll need to know all about freight forwarders.

Utilising A Business Plan

Planning is essential to all parts of life. This applies to business too. By not using a plan, you’ll be more likely to fail and run the risk of losing a lot of money in your importing and exporting venture.

But where to start? Well, you know that you will need suppliers, so begin to plan and research what suppliers are out there. Make contact with them, beginning to build a network and getting a feel for the market.

Then, build your plan and look at other areas that you know will be necessary to your business. This can be altered at a later stage too, as your plan is fully adaptable and you should expect changes to happen.