Your profit margins could be severely impacted if you don’t take into account important levies that contribute to the buying price of your products which can make it crucial for you to decipher customs and excise vat duties to enhance your revenue. If you wish to begin a trading or manufacturing business in a EU State then it’s imperative that you comprehend the importance of various duties whenever you import and then sell your goods.
If you wish to start importing goods and services into your country then you’ll need to pay customs duties, excise duties, or import vat on those services or products depending on 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 such as Poland, Sweden, Germany, etc then a thorough understanding of uk vat is important when you begin selling your goods in the local market. In case your services or goods already have incurred eu vat within their home countries before you import it to the UK then you can certainly make an application for vat reclaim in those countries so as to lower 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 to the UK. Most products also attract sales vat or value added tax when they’re sold locally and it is the hm revenue and customs department that will be tracking the sales. Once your sales cross over the vat threshold limit of more than �70,000 in 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 permit 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 should be employed to ensure that all your imports and vat returns are handled efficiently. There are numerous goods 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 well before the time limit.
Failure to cover the importance of customs and excise vat duties could prove to be fatal to your business. You won’t just end up with higher product costs but also 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 perhaps the country of origin. You could also lose out on a legitimate vat refund if you are not conversant with all the latest vat rules.
When running a business, it is important to allow professionals to guide you, especially when the job involves lowering your costs legally and dealing with important gov 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 bottom line.