Your profit margins could be severely impacted if you fail to factor in important levies that contribute to the buying price of your products and this makes it critical for you to decipher customs and excise vat duties to enhance your revenue. If you wish to start a trading or manufacturing business in any EU State then it’s imperative that you understand the significance of various duties whenever you import and sell your goods.
If you want to start importing services and goods into your country then you’ll have to pay customs duties, excise duties, or import vat on those services or products dependant upon the classification under which they fall. If your business is based in the UK and you plan to import goods from other EU States such as Poland, Sweden, Germany, etc then a thorough knowledge of uk vat is necessary when you start selling your goods in the local market. If your goods or services 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 stop double taxation.
In the UK, it’s the hm customs and excise department that handles all matters linked to customs and excise vat on products and services imported and sold within the country. Most commercial products fall within one of the 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 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’ll be tracking the sales. Once your sales cross 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 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 ought to be employed so that all your imports and vat returns are handled efficiently. There are numerous goods that attract lower import duties and vat rates, while some will also be vat exempt. It is possible to 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 pay the importance of customs and excise vat duties could prove to generally be fatal to your business. You won’t just end up having higher product costs but also 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 united kingdom or even in the country of origin. You might 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 guide you, specially when the job involves lowering your costs legally and dealing with important government departments. It is very important that you just connect with an efficient customs and excise vat consultant or agency that offers all import and vat services in one place in order to enhance your business bottom line.