Your profits could be severely impacted if you fail to take into account important levies that play a role in the cost of your products which can make it crucial for you to decipher customs and excise vat duties to enhance your revenue vat verification. If you wish to begin a trading or manufacturing business in any EU State then it is vital that you understand the importance of various duties when you import and then sell your goods.
If you want to start importing services and goods to your country then you’ll have to pay customs duties, excise duties, or import vat on those services or products dependant upon the classification to which they fall. If your business is based in the UK and you also intend to import goods from other EU States such as Poland, Sweden, Germany, etc then a thorough knowledge of uk vat is important when you start selling your goods in the local market. In case your services or goods have already 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 so as to lower your product costs and stop double taxation.
In the united kingdom, it is the hm customs and excise department that handles all matters related to customs and excise vat on goods 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 most 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’re sold locally and it’s also the hm revenue and customs department that’ll be tracking the sales. As soon as your sales go over the vat threshold limit of over £70,000 in the past 12 months you might have to get vat registered.
Vat registration will not only allow you to charge vat to the clients as part of 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 numerous products that attract lower import duties and vat rates, while many will also be vat exempt. It is possible to surely lower your product costs by slotting them in the correct category as well as claiming vat refunds prior to time limit.
Failure to pay the importance of customs and excise vat duties could prove to generally be fatal to your business. You won’t just 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 united kingdom or even in 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 running 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 very important that you connect with the efficient customs and excise vat consultant or agency that offers all import and vat services in one place so as to enhance your business net profit.