Your profits could be severely impacted if you fail to factor in important levies that play a role in the buying price of your product or service which can make it critical for that you decipher customs and excise vat duties to enhance your earnings. If you want to begin a trading or manufacturing business in any EU State then it is vital that you comprehend the significance of various duties whenever you import and sell your goods.
If you wish 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 under which they fall. In case your business is based in the UK and you plan to import goods from other EU States like Poland, Sweden, Germany, etc a thorough knowledge of uk vat is important when you begin selling your goods in the local market. If your services or goods 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 so as to decrease your product costs and stop double taxation.
In the united kingdom, 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 in 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’re sold locally and it is 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 12 months 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 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. An experienced customs, excise and vat agent or consultant should be employed so that all of your imports and vat returns are handled efficiently. There are several goods that attract lower import duties and vat rates, while many are also vat exempt. You can surely reduce your product costs by slotting them in the correct category as well as claiming vat refunds well before time limit.
Failure to pay 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 also in case you end up causing losses towards vat customs and excise department then you could be booked for fraudulently importing or selling services or goods in the united kingdom or even in the country of origin. You could also lose out on a legitimate vat refund if you are not conversant with the latest vat rules.
When operating a business, it is important to allow professionals to guide you, specially when the task involves lowering your costs legally and addressing important gov departments. It is vital that you connect with an efficient customs and excise vat consultant or agency that offers all import and vat services under one roof in order to improve your business net profit.