Decipher customs and excise vat duties to improve your income

Your profits could be severely impacted if you fail to factor in important levies that contribute to the buying price of your products which can make it crucial for you to decipher customs and excise vat duties to enhance your earnings. If you want to start a trading or manufacturing business in any EU State then it’s vital that you understand the importance of various duties when you import and then sell your goods.

If you wish to start importing services and goods to your country then you’ll need to pay customs duties, excise duties, or import vat on those products or services depending on the classification to which they fall. In case your business is based in the UK and you also intend to import goods from other EU States like Poland, Sweden, Germany, etc a thorough knowledge of uk vat is important when you begin 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 certainly 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 goods and services imported and sold inside the country. Most commercial products fall withinone of several 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’ll be tracking the 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 the clients as part of your vat invoice but additionally allow 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. 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 pay the significance of customs and excise vat duties could prove to generally be fatal for your business. You will not only 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 perhaps the land of origin. You could also miss out on a real vat refund if you are not conversant with all the latest vat rules.

When operating a business, it is important to allow professionals to help you, specially when the task involves reducing your costs legally and dealing with important government departments. It is vital that you connect with an efficient customs and excise vat consultant or agency which provides all import and vat services in one place in order to enhance your business net profit.