Your profits could be severely impacted if you fail to factor in important levies that contribute to the buying price of your products and this makes it critical for that you decipher customs and excise vat duties to enhance your revenue. If you wish to begin a trading or manufacturing business in a EU State then it’s vital that you comprehend the importance of various duties whenever you import and sell your goods.
If you wish 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. In case your organization is located in the UK and you also intend to import goods from other EU States like Poland, Sweden, Germany, etc then a thorough knowledge of uk vat is necessary when you begin selling your goods in the local market. If your goods or services already have incurred eu vat within their home countries before you import it to the UK then you can certainly make an application for vat reclaim in those countries in order 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 inside the country. Most commercial products fall inone of several 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 vatvalidation into 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 will be tracking the sales. Once your sales go over the vat threshold limit of over £70,000 during the past 12 months then you may have to get vat registered.
Vat registration will not only allow you to charge vat to your clients in your vat invoice but also allow 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 to ensure that all 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. It is possible to surely reduce your product costs by slotting them in the correct category in addition to 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 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 goods or services in the united kingdom or even in the land of origin. You could also lose out on a legitimate vat refund if you are not conversant with the latest vat rules.
When running a business, it is essential to allow professionals to guide you, especially when the job involves lowering your costs legally and addressing important gov departments. It is vital that you just connect with an efficient customs and excise vat consultant or agency which provides all import and vat services in one place so as to improve your business net profit.