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 and this makes it critical for you to decipher customs and excise vat duties to improve your earnings. If you want to start a trading or manufacturing business in any EU State then it is vital that you understand the importance 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 need to pay customs duties, excise duties, or import vat on those products or services depending on the classification under which they fall. If your business is located in the UK and you plan to import goods from other EU States such as Poland, Sweden, Germany, etc then a thorough knowledge of uk vat is necessary when you start selling your goods in the local market. If your goods or services have already incurred eu vat in 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 is 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 in any one of the 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 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 over £70,000 in the past 12 months then you may 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 for 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 your imports and vat returns are handled efficiently. There are several products that attract lower import duties and vat rates, while some are also vat exempt. You can surely lower your product costs by slotting them in the correct category as well as claiming vat refunds well before the time limit.

Failure to pay heed to the importance of customs and excise vat duties could prove to be fatal for your business. You will not only end up with higher product costs but in case you end up causing losses to the vat customs and excise department then you could be booked for fraudulently importing or selling goods or services in the UK or even in the country of origin. You could also lose out on a legitimate vat refund if you are not conversant with the latest vat rules.

When running a business, it is important to allow professionals to guide you, especially when the job involves lowering your costs legally and dealing with important government departments. It is very important that you tie up with an efficient customs and excise vat consultant or agency that offers all import and vat services under one roof so as to improve your business bottom line.