Decipher customs and excise vat duties to improve your income

Your profit margins could be severely impacted if you don’t take into account important levies that play a role in the buying price of your product or service and this can make it crucial for that you decipher customs and excise vat duties to enhance your earnings. If you want to begin a trading or manufacturing business in any EU State then it is imperative that you understand the importance of various duties whenever you import and then sell your goods.

If you want to start importing goods and services to your country then you’ll need to pay customs duties, excise duties, or import vat on those services or products depending on the classification under which they fall. If your business is located in the UK and you intend to import goods from other EU States like Poland, Sweden, Germany, etc a thorough understanding of uk vat is important when you start selling your goods in the local market. If your goods or services already have incurred eu vat within their home countries before you decide to import it to the UK then you can apply for vat reclaim in those countries in order to decrease your product costs and stop double taxation.

In the UK, it’s the hm customs and excise department that handles all matters linked to customs and excise vat on products and services imported and sold within the country. Most commercial products fall withinone of several 14,000 classifications specified by the customs division while most tobacco and alcohol products will attract excise duties. Many products also attract import vat while being imported to the UK. Most products also attract sales vat or value added tax when they are sold locally and it is the hm revenue and customs department that will be tracking your sales. As soon as your sales cross over the vat threshold limit of over £70,000 during the past 1 year you might have to get vat registered.

Vat registration will not only allow you to charge vat to the clients as part of your vat invoice but also permit you to claim a vat refund in case you have already paid vat in the country of origin before importing it to the UK. A skilled customs, excise and vat agent or consultant ought to be employed so that all of your imports and vat returns are handled efficiently. There are several products that attract lower import duties and vat rates, while some are also vat exempt. It is possible to surely reduce your product costs by slotting them within the correct category as well as claiming vat refunds well before the time limit.

Failure to pay the significance of customs and excise vat duties could prove to generally be fatal to your business. You won’t just end up having higher product costs but also in case you end up causing losses towards vat customs and excise department then you could be booked for fraudulently importing or selling goods or services in the UK or even in the country of origin. You might lose out on a real vat refund if you aren’t conversant with all the latest vat rules.

When running a business, it is important to allow professionals to help you, especially when the job involves lowering your costs legally and addressing important government departments. It is very important that you tie up with an efficient customs and excise vat consultant or agency that offers all import and vat services in one place so as to enhance your business net profit.