Your profits could be severely impacted if you don’t take into account important levies that play a role in the buying price of your product or service which makes it crucial for you to decipher customs and excise vat duties to improve your revenue. If you want to start a trading or manufacturing business in any EU State then it’s vital that you comprehend the significance of various duties when you import and sell your goods.
If you wish to start importing goods and services into your country then you’ll need 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 organization is located in the UK and you intend to import goods from other EU States such as Poland, Sweden, Germany, etc a thorough understanding of uk vat is necessary when you begin 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 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 within 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 are sold locally and it is the hm revenue and customs department that’ll be tracking your sales. Once your sales cross over the vat threshold limit of more than £70,000 in the past 1 year then you may need to get vat registered.
Vat registration will not only allow you to charge vat to your clients as part of your vat invoice but also 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 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 will also be 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 cover the significance of customs and excise vat duties could prove to generally 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 united kingdom or perhaps the country of origin. You could also miss out on a legitimate vat refund if you are not conversant with all the latest vat rules.
When operating a business, it is important to allow professionals to guide you, especially when the task involves reducing your costs legally and dealing with important government departments. It is very important that you just connect with the efficient customs and excise vat consultant or agency that offers all import and vat services in one place in order to improve your business bottom line.