Your profits could be severely impacted if you don’t factor in important levies that contribute to the cost of your product or service and this makes it crucial for you to decipher customs and excise vat duties to enhance your earnings vat verification. If you want to start a trading or manufacturing business in any EU State then it’s imperative that you understand the importance of various duties whenever you import and then sell your goods.
If you wish to start importing goods and services into your country then you’ll need to pay customs duties, excise duties, or import vat on those products or services depending on the classification under which they fall. If your organization is based in the UK and you intend to import goods from other EU States such as Poland, Sweden, Germany, etc a thorough knowledge of uk vat is necessary 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 decide to 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 prevent double taxation.
In the united kingdom, it is 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 within 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 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. As soon as your sales go over the vat threshold limit of more than £70,000 in the past 1 year then you may need to get vat registered.
Vat registration will not only allow you to charge vat to the clients as part of your vat invoice but also permit you to claim a vat refund if 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 of your imports and vat returns are handled efficiently. There are several products that attract lower import duties and vat rates, while some are also vat exempt. You can 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 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 may be booked for fraudulently importing or selling goods or services in the united kingdom or even in the country of origin. You might lose out on a real vat refund if you aren’t conversant with the latest vat rules.
When running a business, it is important to allow professionals to help you, especially when the job involves reducing your costs legally and addressing important gov departments. It is vital that you connect with the efficient customs and excise vat consultant or agency that offers all import and vat services under one roof in order to improve your business bottom line.