Your profits could be severely impacted if you fail to factor in important levies that play a role in the cost of your products which makes it critical for you to decipher customs and excise vat duties to improve your earnings. If you wish to begin a trading or manufacturing business in a EU State then it is imperative that you comprehend the significance of various duties when you import and sell your goods.
If you want to start importing services and goods into 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 business is located in the UK and you intend 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 goods or services already have incurred eu vat in 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 decrease 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 products 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 vat validation 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 have to get vat registered.
Vat registration won’t just allow you to charge vat to your clients as part of your vat invoice but also permit 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 ought to be employed so that all of your imports and vat returns are handled efficiently. There are numerous products that attract lower import duties and vat rates, while some will also be vat exempt. You can surely reduce your product costs by slotting them in the correct category as well as claiming vat refunds well before time limit.
Failure to pay the significance of customs and excise vat duties could prove to generally be fatal for your business. You will not only end up having higher product costs but also in case you end up causing losses towards vat customs and excise department then you could 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 real vat refund if you aren’t conversant with the latest vat rules.
When operating a business, it is important to allow professionals to help you, specially when the task involves reducing your costs legally and dealing with important gov departments. It is very important that you just connect with the efficient customs and excise vat consultant or agency which provides all import and vat services under one roof in order to enhance your business net profit.