Your profits could be severely impacted if you don’t take into account important levies that play a role in the cost of your product or service and this can make it crucial for you to decipher customs and excise vat duties to improve your earnings. If you want to begin a trading or manufacturing business in any EU State then it is imperative 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 have to pay customs duties, excise duties, or import vat on those services or products depending on the classification under which they fall. If your business is located in the UK and you intend to import goods from other EU States such as Poland, Sweden, Germany, etc then a thorough knowledge 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 in 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’s 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 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 are sold locally and it’s also the hm revenue and customs department that’ll be tracking your sales. As soon as your sales cross over the vat threshold limit of more than �70,000 during the past 1 year then you may 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 if 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 so that all your imports and vat returns are handled efficiently. There are numerous 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 well before time limit.
Failure to cover the importance of customs and excise vat duties could prove to be fatal to your business. You will not only end up with higher product costs but also in case you end up causing losses towards vat customs and excise department then you may 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 real vat refund if you aren’t conversant with all the latest vat rules.
When running a business, it is essential to allow professionals to help you, especially when the task involves lowering your costs legally and addressing important gov departments. It is very important that you just tie up with the efficient customs and excise vat consultant or agency that offers all import and vat services in one place so as to enhance your business net profit.