Your profits could be severely impacted if you fail to take into account important levies that play a role in the cost of your product or service which makes it crucial for that you 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 significance of various duties when you import and then sell your goods.
If you want to start importing goods and services into your country then you will have to pay customs duties, excise duties, or import vat on those services or products depending on the classification to which they fall. In case your organization is based in the UK and you also intend to import goods from other EU States such as Poland, Sweden, Germany, etc then a thorough understanding 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 in 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 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 goods and services imported and sold within 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 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 will be tracking your sales. As soon as your sales cross over the vat threshold limit of over £70,000 during the past 1 year 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 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 your imports and vat returns are handled efficiently. There are numerous products that attract lower import duties and vat rates, while some will also be vat exempt. You can surely reduce your product costs by slotting them in the correct category in addition to claiming vat refunds prior to the time limit.
Failure to pay the significance of customs and excise vat duties could prove to generally be fatal for 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 may be booked for fraudulently importing or selling services or goods in the united kingdom or perhaps the country of origin. You might lose out on a real vat refund if you are not conversant with 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 dealing with important government departments. It is vital that you just connect with an efficient customs and excise vat consultant or agency that offers all import and vat services under one roof in order to enhance your business net profit.