Your profits could be severely impacted if you fail to take into account important levies that contribute to the cost of your product or service which makes it crucial for you to decipher customs and excise vat duties to improve your earnings. If you wish to start a trading or manufacturing business in any EU State then it’s imperative that you understand the significance of various duties when you import and then sell your goods.
If you wish to start importing goods and services to your country then you will have to pay customs duties, excise duties, or import vat on those products or services dependant upon the classification to which they fall. If your organization is based in the UK and you also plan to import goods from other EU States like Poland, Sweden, Germany, etc 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 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 stop 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 products and services imported and sold within 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 are sold locally and it’s also the hm revenue and customs department that’ll 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 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. A skilled customs, excise and vat agent or consultant should be employed so that all of your imports and vat returns are handled efficiently. There are numerous goods that attract lower import duties and vat rates, while some will also be vat exempt. It is possible to surely reduce your product costs by slotting them within the correct category as well as claiming vat refunds well before time limit.
Failure to pay the importance of customs and excise vat duties could prove to generally be fatal to your business. You won’t just end up having higher product costs but 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 miss out on a real 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, especially when the task involves reducing your costs legally and addressing important government departments. It is vital that you tie up with the efficient customs and excise vat consultant or agency that offers all import and vat services in one place so as to enhance your business net profit.