Your profit margins could be severely impacted if you fail to take into account important levies that contribute to the buying price of your products and this can make it crucial for that you 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 is vital that you understand the importance of various duties when you import and then sell your goods.
If you want to start importing services and goods to your country then you will have to pay customs duties, excise duties, or import vat on those services or products dependant upon the classification to which they fall. If your organization is located in the UK and you also intend to import goods from other EU States such as Poland, Sweden, Germany, etc then a thorough understanding of uk vat is necessary when you start selling your goods in the local market. In case your services or goods already have 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 stop 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 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 vat validation to 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 will be tracking your sales. Once your sales go over the vat threshold limit of more than £70,000 in the past 12 months you might have to get vat registered.
Vat registration will not only allow you to charge vat to your 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. You can surely reduce your product costs by slotting them within the correct category in addition to claiming vat refunds well before 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 towards vat customs and excise department then you may be booked for fraudulently importing or selling goods or services in the united kingdom or even in the country of origin. You could also miss out on a real vat refund if you aren’t conversant with the latest vat rules.
When operating a business, it is essential to allow professionals to help you, specially 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 under one roof in order to enhance your business bottom line.