Your profits could be severely impacted if you don’t factor in important levies that play a role in the cost of your products which makes it crucial for you to decipher customs and excise vat duties to enhance your revenue http://vatverification.com. If you want to begin a trading or manufacturing business in a EU State then it is imperative that you understand the importance of various duties whenever you import and sell your goods.
If you wish to start importing services and goods to your country then you will have to pay customs duties, excise duties, or import vat on those products or services depending on the classification under 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 then a thorough understanding of uk vat is important when you begin selling your goods in the local market. If your goods or services already have incurred eu vat within their home countries before you decide to import it to the UK then you can certainly make an application for vat reclaim in those countries so as to decrease your product costs and prevent double taxation.
In the united kingdom, 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 in one of the 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 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’ll be tracking the sales. As soon as your sales cross over the vat threshold limit of more than £70,000 in the past 12 months you might need to get vat registered.
Vat registration won’t just 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. A skilled customs, excise and vat agent or consultant should be employed to ensure 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 as well as claiming vat refunds prior to time limit.
Failure to cover the importance of customs and excise vat duties could prove to generally be fatal for your business. You won’t just 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 services or goods in the UK or even in the country of origin. You could also miss out on a real vat refund if you are not conversant with the latest vat rules.
When operating a business, it is essential to allow professionals to guide you, specially when the job involves lowering your costs legally and addressing important government departments. It is very important that you connect with the 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.