Decipher customs and excise vat duties to enhance your income

Your profit margins could be severely impacted if you fail to factor in important levies that play a role in the buying price of your product or service and this can make it critical for that you decipher customs and excise vat duties to improve your earnings. If you wish to start a trading or manufacturing business in a EU State then it’s vital that you understand the significance of various duties when you import and then sell your goods.

If you wish to start importing services and goods into 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. If your business is based in the UK and you plan to import goods from other EU States like Poland, Sweden, Germany, etc a thorough understanding of uk vat is necessary 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 import it to the UK then you can make an application for vat reclaim in those countries in order to decrease your product costs and prevent double taxation.

In the UK, it’s the hm customs and excise department that handles all matters related to customs and excise vat on goods and services imported and sold within the country. Most commercial products fall withinone of several 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 https://vatvalidation.com 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 will be tracking your sales. Once your sales cross over the vat threshold limit of more than £70,000 in the past 12 months you might have to get vat registered.

Vat registration will not only allow you to charge vat to your clients as part of your vat invoice but additionally 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. A skilled 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 goods that attract lower import duties and vat rates, while some are also vat exempt. It is possible to surely reduce your product costs by slotting them in the correct category in addition to claiming vat refunds prior to the time limit.

Failure to cover the importance of customs and excise vat duties could prove to be fatal to 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 could be booked for fraudulently importing or selling services or goods in the UK or even in the country of origin. You could also miss out on a real vat refund if you are not conversant with the latest vat rules.

When running a business, it is important to allow professionals to help you, especially when the task involves lowering your costs legally and addressing important government departments. It is vital that you tie up with an efficient customs and excise vat consultant or agency which provides all import and vat services in one place in order to improve your business net profit.