Your profit margins could be severely impacted if you fail to take into account important levies that play a role in the cost of your product or service and this can make it crucial for that you decipher customs and excise vat duties to enhance your revenue. If you want to start a trading or manufacturing business in any EU State then it is vital that you understand the importance of various duties whenever you import and then 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 dependant upon the classification under which they fall. If your business is based in the UK and you also intend to import goods from other EU States like Poland, Sweden, Germany, etc then 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 decide to 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 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 goods and services imported and sold inside the country. Most commercial products fall withinone of several 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 www.vatvalidation.com 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. As soon as your sales go over the vat threshold limit of more than £70,000 in the past 1 year you might have 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. An experienced customs, excise and vat agent or consultant ought to be employed to ensure that all of 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. 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 significance of customs and excise vat duties could prove to be fatal for your business. You won’t just end up with higher product costs but also in case you end up causing losses towards vat customs and excise department then you could be booked for fraudulently importing or selling services or goods in the united kingdom or perhaps the land of origin. You might lose out on a real vat refund if you aren’t conversant with all the latest vat rules.
When operating a business, it is important to allow professionals to help you, especially when the job involves lowering your costs legally and dealing with important government departments. It is very important that you connect with an efficient customs and excise vat consultant or agency which provides all import and vat services under one roof in order to improve your business bottom line.