Decipher customs and excise vat duties to enhance your earnings

Your profits could be severely impacted if you fail to take into account important levies that play a role in the buying price of your products and this makes 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 importance of various duties whenever you import and then sell your goods.

If you wish to start importing goods and services to your country then you’ll need to pay customs duties, excise duties, or import vat on those services or products dependant upon the classification to which they fall. In case your business is based in the UK and you plan to import goods from other EU States such as Poland, Sweden, Germany, etc then a thorough understanding of uk vat is important when you begin selling your goods in the local market. In case your services or goods already have incurred eu vat in their home countries before you import it to the UK then you can certainly apply for vat reclaim in those countries so as 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 products and services imported and sold inside 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 into the UK. Most products also attract sales vat or value added tax when they’re sold locally and it’s also 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 during the past 1 year then you may have to get vat registered.

Vat registration will not only allow you to charge vat to your clients in 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 ought to be employed so that all of 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. You can surely reduce your product costs by slotting them in the correct category as well as claiming vat refunds well before time limit.

Failure to pay the significance of customs and excise vat duties could prove to be fatal for your business. You will not only end up having higher product costs but in case you end up causing losses to the vat customs and excise department then you may be booked for fraudulently importing or selling goods or services in the UK or perhaps the country of origin. You might 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 guide you, specially when the task involves lowering your costs legally and addressing important government departments. It is vital that you just 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.