Decipher customs and excise vat duties to improve your earnings

Your profit margins could be severely impacted if you fail to factor in important levies that contribute to the cost of your products which makes it critical for that you decipher customs and excise vat duties to enhance your earnings. If you wish to start a trading or manufacturing business in a EU State then it’s vital that you comprehend the significance of various duties when you import and then sell your goods.

If you want to start importing services and goods to your country then you will have to pay customs duties, excise duties, or import vat on those services or products depending on the classification to which they fall. In case your organization is located in the UK and you also intend to import goods from other EU States like Poland, Sweden, Germany, etc a thorough knowledge of uk vat is important when you begin selling your goods in the local market. If your services or goods already have incurred eu vat in their home countries before you import it to the UK then you can certainly make an application for vat reclaim in those countries in order to decrease your product costs and prevent double taxation.

In the united kingdom, it is the hm customs and excise department that handles all matters related to customs and excise vat on goods 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 many 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 are sold locally and it is the hm revenue and customs department that’ll be tracking the sales. Once your sales cross over the vat threshold limit of more than £70,000 during the past 1 year then you may need to get vat registered.

Vat registration will not only allow you to charge vat to the clients as part of your vat invoice but additionally allow 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 should be employed to ensure that all of your imports and vat returns are handled efficiently. There are several goods that attract lower import duties and vat rates, while many are also vat exempt. You can surely lower your product costs by slotting them in the correct category as well as claiming vat refunds prior to the time limit.

Failure to pay the importance 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 towards vat customs and excise department then you may be booked for fraudulently importing or selling goods or services in the UK or perhaps the country of origin. You might lose out on a real vat refund if you are not conversant with all the latest vat rules.

When running a business, it is important to allow professionals to help you, specially when the job involves lowering your costs legally and dealing with important government departments. It is very important that you just connect with an efficient customs and excise vat consultant or agency that offers all import and vat services under one roof in order to enhance your business net profit.