Decipher customs and excise vat duties to improve your earnings

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 which can make it crucial for you to decipher customs and excise vat duties to enhance your earnings. If you want to start a trading or manufacturing business in a EU State then it’s vital that you comprehend 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 products or services depending on the classification to which they fall. In case your organization is based in the UK and you intend to import goods from other EU States like Poland, Sweden, Germany, etc a thorough knowledge of uk vat is important when you start selling your goods in the local market. In case your goods or services already have incurred eu vat within their home countries before you import it to the UK then you can apply for vat reclaim in those countries so as to lower your product costs and prevent 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 in 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 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’ll be tracking the sales. As soon as your sales cross over the vat threshold limit of over £70,000 during the past 12 months you might have to get vat registered.

Vat registration won’t just 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. An experienced customs, excise and vat agent or consultant should be employed so that all your imports and vat returns are handled efficiently. There are numerous goods that attract lower import duties and vat rates, while many are also vat exempt. It is possible to surely reduce your product costs by slotting them within the correct category in addition to claiming vat refunds prior to the time limit.

Failure to pay the importance of customs and excise vat duties could prove to generally be fatal to your business. You won’t just end up with higher product costs but in case you end up causing losses towards vat customs and excise department then you could be booked for fraudulently importing or selling services or goods in the UK or even in the land 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 guide you, specially 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 in one place so as to improve your business bottom line.