Your profit margins could be severely impacted if you fail to factor in important levies that contribute to the cost of your product or service which makes it crucial for that you decipher customs and excise vat duties to enhance your revenue. If you wish to start 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 wish to start importing goods and services to your country then you will have to pay customs duties, excise duties, or import vat on those products or services depending on the classification under which they fall. In case your business is based in the UK and you plan to import goods from other EU States like Poland, Sweden, Germany, etc then a thorough knowledge of uk vat is necessary when you start selling your goods in the local market. In case your services or goods already have incurred eu vat in their home countries before you import it to the UK then you can apply for vat reclaim in those countries so as 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 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. 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 in your vat invoice but also allow 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 numerous products that attract lower import duties and vat rates, while many will also be vat exempt. You can surely lower your product costs by slotting them within the correct category as well as 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 with higher product costs but in case you end up causing losses to the vat customs and excise department then you may be booked for fraudulently importing or selling goods or services in the UK or perhaps the land of origin. You might lose out on a real vat refund if you aren’t conversant with the latest vat rules.
When operating a business, it is essential to allow professionals to guide you, especially when the task involves reducing your costs legally and dealing with important gov 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 in one place so as to improve your business bottom line.