Your profits 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 which can make it critical for you to decipher customs and excise vat duties to enhance your revenue. If you wish to begin a trading or manufacturing business in any EU State then it is imperative that you understand the importance of various duties whenever you import and sell your goods.
If you want 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 located in the UK and you intend to import goods from other EU States such as Poland, Sweden, Germany, etc then a thorough understanding of uk vat is necessary when you begin selling your goods in the local market. If 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 apply for vat reclaim in those countries so as to lower your product costs and prevent 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 products 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 will be tracking the sales. Once your sales go over the vat threshold limit of more than £70,000 during the past 1 year you might have to get vat registered.
Vat registration won’t just allow you to charge vat to the clients as part of your vat invoice but additionally 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 your imports and vat returns are handled efficiently. There are several goods that attract lower import duties and vat rates, while some will also be vat exempt. It is possible to surely lower your product costs by slotting them in the correct category in addition to claiming vat refunds well before time limit.
Failure to cover the significance of customs and excise vat duties could prove to generally be fatal for 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 services or goods in the united kingdom or perhaps the country of origin. You could also miss out on a legitimate vat refund if you aren’t conversant with all the latest vat rules.
When operating a business, it is important to allow professionals to guide you, specially when the job involves lowering your costs legally and addressing important gov departments. It is very important that you tie up with an efficient customs and excise vat consultant or agency that offers all import and vat services in one place so as to improve your business net profit.