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 product or service and this can make it crucial for that you decipher customs and excise vat duties to enhance your earnings. If you wish to start a trading or manufacturing business in a EU State then it is imperative that you understand the importance of various duties when you import and 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 located in the UK and you intend to import goods from other EU States like Poland, Sweden, Germany, etc a thorough knowledge 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 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 inone 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 vat validation 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. As soon as your sales cross over the vat threshold limit of over £70,000 in the past 12 months you might need to get vat registered.

Vat registration will not only allow you to charge vat to the clients in 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 some are also vat exempt. It is possible to surely reduce your product costs by slotting them within the correct category as well as claiming vat refunds prior to time limit.

Failure to pay the significance of customs and excise vat duties could prove to be fatal to 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 could be booked for fraudulently importing or selling goods or services 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 running a business, it is essential to allow professionals to guide you, specially when the job involves lowering your costs legally and dealing with important gov departments. It is vital that you just 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 bottom line.