Your profit margins could be severely impacted if you fail to factor in important levies that play a role in the cost of your products and this can make it critical for that you decipher customs and excise vat duties to enhance your revenue. If you wish to start a trading or manufacturing business in any EU State then it’s imperative that you comprehend the significance 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 products or services depending on the classification under which they fall. In case your business is located in the UK and you intend to import goods from other EU States such as Poland, Sweden, Germany, etc a thorough knowledge of uk vat is necessary when you start selling your goods in the local market. In case your services or goods already have incurred eu vat within their home countries before you decide to import it to the UK then you can certainly apply for vat reclaim in those countries so as to decrease your product costs and stop double taxation.
In the UK, 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 inside the country. Most commercial products fall inone 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 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. As soon as your sales go over the vat threshold limit of over £70,000 during the past 1 year then you may need to get vat registered.
Vat registration won’t just 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 should be employed to ensure that all of your imports and vat returns are handled efficiently. There are numerous goods 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 well before time limit.
Failure to cover the significance 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 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 united kingdom or perhaps the land of origin. You could also lose out on a legitimate vat refund if you are not conversant with the latest vat rules.
When running a business, it is important 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 connect with the 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.