Decipher customs and excise vat duties to improve your earnings

Your profit margins could be severely impacted if you don’t factor in important levies that play a role in the cost of your product or service which makes 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 a EU State then it is imperative that you understand the significance of various duties whenever you import and sell your goods.

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

In the united kingdom, 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 inside the country. Most commercial products fall in 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 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 the sales. Once your sales go over the vat threshold limit of over £70,000 in the past 12 months then you may have to get vat registered.

Vat registration won’t just allow you to charge vat to your clients in your vat invoice but additionally 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 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 many are also vat exempt. You can surely reduce your product costs by slotting them within the correct category as well as claiming vat refunds prior to time limit.

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

When operating a business, it is essential to allow professionals to guide you, especially when the job involves reducing your costs legally and dealing with important government departments. It is very important that you just tie up with the efficient customs and excise vat consultant or agency that offers all import and vat services in one place in order to enhance your business net profit.