Your profits could be severely impacted if you fail to take into account important levies that contribute to the buying price of your products which can make it crucial for you to decipher customs and excise vat duties to improve your revenue. If you wish to start a trading or manufacturing business in a EU State then it’s imperative that you understand the significance of various duties whenever you import and then sell your goods.
If you want to start importing services and goods to your country then you’ll 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 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 important when you start selling your goods in the local market. In case your goods or services already have incurred eu vat within their home countries before you import it to the UK then you can apply for vat reclaim in those countries in order to lower your product costs and stop double taxation.
In the UK, it is the hm customs and excise department that handles all matters related to customs and excise vat on products and services imported and sold within 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 to 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 1 year you might have to get vat registered.
Vat registration won’t just allow you to charge vat to your clients as part of your vat invoice but additionally permit 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 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. It is possible to surely reduce your product costs by slotting them in the correct category in addition to claiming vat refunds well before time limit.
Failure to cover 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 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 UK 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 running a business, it is essential to allow professionals to guide you, specially when the task involves lowering your costs legally and dealing with important government departments. It is very important that you connect with an efficient customs and excise vat consultant or agency which provides all import and vat services in one place in order to improve your business bottom line.