Your profit margins could be severely impacted if you fail to factor in important levies that play a role in the buying price of your products and this makes 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’s imperative that you comprehend the significance of various duties when you import and sell your goods.
If you wish 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 organization is located 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 begin selling your goods in the local market. In case your services or goods have already incurred eu vat within their home countries before you import it to the UK then you can certainly apply for vat reclaim in those countries so as to decrease your product costs and stop 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 within the country. Most commercial products fall in 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 vatvalidation.com to 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 go over the vat threshold limit of over £70,000 during the past 1 year you might 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 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 ought to 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 many are also vat exempt. You can surely reduce your product costs by slotting them within the correct category as well as claiming vat refunds prior to time limit.
Failure to cover the importance 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 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 UK or perhaps the country of origin. You might lose out on a real vat refund if you are not conversant with all the latest vat rules.
When operating a business, it is essential to allow professionals to help you, especially when the job involves reducing your costs legally and addressing 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 under one roof so as to enhance your business bottom line.