Decipher customs and excise vat duties to improve your income

Your profits could be severely impacted if you fail to take into account important levies that contribute to the buying price of your product or service which can make it critical for you to decipher customs and excise vat duties to improve your revenue vat numbers. 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 when you import and sell your goods.

If you want to start importing goods and services into your country then you will have 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 plan to import goods from other EU States like Poland, Sweden, Germany, etc a thorough understanding of uk vat is important when you start selling your goods in the local market. If your goods or services have already 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 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 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 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 your sales. Once your sales go over the vat threshold limit of over £70,000 in the past 1 year you might need to get vat registered.

Vat registration will not only allow you to charge vat to your clients in your vat invoice but also allow 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 should be employed so that all of your imports and vat returns are handled efficiently. There are numerous products that attract lower import duties and vat rates, while many will also be vat exempt. It is possible to surely lower your product costs by slotting them within 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 for your business useful content. 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 perhaps the land of origin. You might miss out on a legitimate vat refund if you aren’t conversant with all the latest vat rules.

When operating a business, it is important to allow professionals to guide you, specially when the job involves lowering your costs legally and dealing with important gov departments. It is very important that you tie up with the efficient customs and excise vat consultant or agency which provides all import and vat services under one roof in order to enhance your business bottom line.