Your profits could be severely impacted if you don’t factor in important levies that play a role in the buying price of your products and this can make it critical for you to decipher customs and excise vat duties to improve your revenue. If you wish to start a trading or manufacturing business in a EU State then it is imperative that you comprehend the importance of various duties when you import and sell your goods.
If you want to start importing services and goods into 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. If your organization is based in the UK and you also plan to import goods from other EU States like Poland, Sweden, Germany, etc a thorough understanding of uk vat is necessary when you start selling your goods in the local market. In case your services or goods have already incurred eu vat within their home countries before you import it to the UK then you can apply for vat reclaim in those countries so as to lower your product costs and prevent double taxation.
In the UK, 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 within the country. Most commercial products fall withinone 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 to the UK. Most products also attract sales vat or value added tax when they are sold locally and it is the hm revenue and customs department that’ll be tracking the sales. Once your sales cross over the vat threshold limit of over �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 your clients in your vat invoice but additionally 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. 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 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 prior to time limit.
Failure to pay 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 UK or even in the country of origin. You might miss out on a legitimate vat refund if you aren’t conversant with all the latest vat rules.
When operating a business, it is essential to allow professionals to guide you, specially when the task involves lowering your costs legally and addressing important government departments. It is vital that you just connect with the efficient customs and excise vat consultant or agency that offers all import and vat services in one place in order to enhance your business bottom line.