Your profits could be severely impacted if you fail to factor in important levies that play a role in the cost of your product or service 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’s vital that you comprehend the importance of various duties whenever you import and sell your goods.
If you want to start importing goods and services to your country then you’ll need to pay customs duties, excise duties, or import vat on those products or services dependant upon the classification under which they fall. If your organization is located in the UK and you also plan to import goods from other EU States like Poland, Sweden, Germany, etc then a thorough understanding 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 decide to import it to the UK then you can apply for vat reclaim in those countries in order to lower your product costs and stop double taxation.
In the united kingdom, it’s 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 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 into 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. Once your sales cross over the vat threshold limit of more than £70,000 in the past 12 months you might need to get vat registered.
Vat registration won’t just allow you to charge vat to the clients in 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. An experienced customs, excise and vat agent or consultant ought to be employed so that all of 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. It is possible to surely reduce your product costs by slotting them within the correct category as well as claiming vat refunds well before the time limit.
Failure to cover the importance of customs and excise vat duties could prove to be fatal for 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 services or goods in the UK or perhaps the land of origin. You could also miss 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, especially when the job involves lowering your costs legally and addressing important government departments. It is vital that you just tie up with an efficient customs and excise vat consultant or agency that offers all import and vat services under one roof so as to enhance your business bottom line.