Decipher customs and excise vat duties to enhance your income

 

Your profit margins could be severely impacted if you fail to take into account important levies that play a role in the buying price of your products which makes it critical for you to 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 importance of various duties whenever you import and sell your goods.

If you wish to start importing goods and services to your country then you will need to pay customs duties, excise duties, or import vat on those products or services dependant upon the classification to which they fall. If your organization is located in the UK and you intend to import goods from other EU States such as Poland, Sweden, Germany, etc a thorough understanding of uk vat is important when you start selling your goods in the local market. In case your services or goods have already incurred eu vat within their home countries before you decide to import it to the UK then you can certainly apply for vat reclaim in those countries so as to lower your product costs and stop double taxation.

In the UK, it’s the hm customs and excise department that handles all matters related to customs and excise vat on products and services imported and sold within 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 to 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 will be tracking the sales. As soon as your sales go over the vat threshold limit of more than �70,000 in the past 1 year then you may 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 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 to ensure that all 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 lower your product costs by slotting them within the correct category in addition to claiming vat refunds well before 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 in case you end up causing losses towards vat customs and excise department then you may be booked for fraudulently importing or selling services or goods in the united kingdom or even in the country 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 essential to allow professionals to guide you, especially when the task involves lowering your costs legally and dealing with important government departments. It is very important that you connect with the efficient customs and excise vat consultant or agency that offers all import and vat services under one roof so as to enhance your business bottom line.