Your profits could be severely impacted if you fail to factor in important levies that contribute to 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 begin a trading or manufacturing business in any EU State then it is imperative that you comprehend the importance of various duties whenever you import and then sell your goods.
If you wish to start importing services and goods into your country then you will need to pay customs duties, excise duties, or import vat on those services or products depending on the classification to 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 then a thorough understanding of uk vat is important when you start selling your goods in the local market. In case your goods or services already have incurred eu vat in 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 stop double taxation.
In the UK, 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 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’s also the hm revenue and customs department that will be tracking your sales. As soon as your sales cross over the vat threshold limit of more than �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 in 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 several goods that attract lower import duties and vat rates, while many are also vat exempt. It is possible to surely reduce your product costs by slotting them within the correct category in addition to claiming vat refunds prior to the time limit.
Failure to cover the significance 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 also 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 UK or perhaps the country of origin. You could also miss out on a legitimate vat refund if you aren’t conversant with the latest vat rules.
When running a business, it is essential to allow professionals to help you, especially when the task involves lowering your costs legally and addressing important gov departments. It is very important 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 net profit.