Your profit margins could be severely impacted if you fail to factor in important levies that contribute to the buying price of your products which makes it crucial for you to decipher customs and excise vat duties to improve your revenue. If you wish to begin a trading or manufacturing business in any EU State then it is vital that you understand the importance of various duties whenever you import and 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 products or services dependant upon the classification to which they fall. If your business is located in the UK and you 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 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 prevent 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 inside the country. Most commercial products fall inone 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 vatvalidation 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 will be tracking the sales. As soon as your sales go over the vat threshold limit of over £70,000 during the past 12 months you might need to get vat registered.
Vat registration won’t just allow you to charge vat to your clients in your vat invoice but additionally allow you to claim a vat refund if 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 to ensure 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 lower your product costs by slotting them within the correct category as well as claiming vat refunds prior to time limit.
Failure to cover the significance of customs and excise vat duties could prove to generally be fatal to your business. You won’t just end up with 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 perhaps the land of origin. You might miss out on a legitimate 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 lowering your costs legally and addressing important gov departments. It is very important that you just tie up with an efficient customs and excise vat consultant or agency which provides all import and vat services under one roof in order to enhance your business bottom line.