Decipher customs and excise vat duties to enhance your earnings

Your profit margins could be severely impacted if you fail to take into account important levies that play a role in the cost of your products and this can make it critical for that you decipher customs and excise vat duties to enhance your revenue. If you wish to begin a trading or manufacturing business in a EU State then it’s imperative that you comprehend the significance of various duties when you import and sell your goods.

If you wish to start importing services and goods into your country then you’ll have to pay customs duties, excise duties, or import vat on those services or products depending on the classification to which they fall. If your business is based in the UK and you also plan to import goods from other EU States such as Poland, Sweden, Germany, etc then a thorough understanding of uk vat is important when you start selling your goods in the local market. In case your goods or services have already incurred eu vat within their home countries before you import it to the UK then you can certainly make an application for vat reclaim in those countries so as to decrease your product costs and prevent double taxation.

In the UK, it is the hm customs and excise department that handles all matters linked to customs and excise vat on products and services imported and sold inside the country. Most commercial products fall within one of the 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 into the UK. Most products also attract sales vat or value added tax when they’re sold locally and it is the hm revenue and customs department that’ll be tracking the sales. As soon as your sales cross over the vat threshold limit of over �70,000 in the past 1 year you might have to get vat registered.

Vat registration won’t just allow you to charge vat to your clients as part of your vat invoice but also permit you to claim a vat refund if you have already paid vat in the country of origin before importing it to the UK. An experienced customs, excise and vat agent or consultant should 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 will also be vat exempt. You can surely reduce your product costs by slotting them in the correct category in addition to claiming vat refunds well before the time limit.

Failure to pay the importance of customs and excise vat duties could prove to generally be fatal for your business. You won’t just end up having higher product costs but also in case you end up causing losses to the vat customs and excise department then you may be booked for fraudulently importing or selling services or goods in the united kingdom or perhaps the land of origin. You could also miss out on a legitimate vat refund if you are not conversant with the latest vat rules.

When operating a business, it is important to allow professionals to help you, especially when the job involves reducing your costs legally and addressing important gov departments. It is vital that you tie up with the efficient customs and excise vat consultant or agency which provides all import and vat services under one roof in order to enhance your business bottom line.