Your profit margins could be severely impacted if you fail to take into account important levies that contribute to the buying price 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 start a trading or manufacturing business in a EU State then it is imperative that you comprehend the significance of various duties when you import and then sell your goods.
If you wish to start importing goods and services into your country then you’ll have to pay customs duties, excise duties, or import vat on those services or products dependant upon the classification under which they fall. In case your business is based in the UK and you intend to import goods from other EU States like Poland, Sweden, Germany, etc then a thorough knowledge of uk vat is important when you start selling your goods in the local market. If your services or goods already have incurred eu vat in their home countries before you import it to the UK then you can certainly apply for vat reclaim in those countries in order to decrease your product costs and prevent double taxation.
In the united kingdom, it’s 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 in 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’ll be tracking your sales. As soon as your sales cross over the vat threshold limit of over £70,000 during the past 12 months you might need to get vat registered.
Vat registration will not only allow you to charge vat to the clients as part of your vat invoice but additionally 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 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 many are also vat exempt. You can surely reduce your product costs by slotting them within the correct category in addition to claiming vat refunds prior to the time limit.
Failure to pay the importance of customs and excise vat duties could prove to be fatal to your business. You will not only end up having higher product costs but in case you end up causing losses to the vat customs and excise department then you could be booked for fraudulently importing or selling goods or services in the united kingdom or perhaps the country of origin. You might lose out on a legitimate vat refund if you are not conversant with all the latest vat rules.
When operating a business, it is important to allow professionals to help you, specially when the task involves lowering your costs legally and dealing with important government departments. It is very important that you just connect with an efficient customs and excise vat consultant or agency which provides all import and vat services under one roof so as to improve your business net profit.