Your profit margins could be severely impacted if you fail to take into account important levies that play a role in the cost of your products and this can make it crucial for that you decipher customs and excise vat duties to enhance your earnings. If you wish to start a trading or manufacturing business in a EU State then it’s vital that you comprehend the importance of various duties whenever you import and then sell your goods.
If you want 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 located in the UK and you plan to import goods from other EU States such as Poland, Sweden, Germany, etc then a thorough knowledge of uk vat is important when you begin selling your goods in the local market. If your services or goods already have incurred eu vat in their home countries before you decide to import it to the UK then you can make an application for vat reclaim in those countries so as 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 withinone 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 into 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 your sales. Once your sales go over the vat threshold limit of over �70,000 during the past 12 months you might need to get vat registered.
Vat registration won’t just allow you to charge vat to your 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. An experienced customs, excise and vat agent or consultant ought to 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 reduce your product costs by slotting them within 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 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 may be booked for fraudulently importing or selling goods or services in the UK or even in the land of origin. You could also lose out on a real vat refund if you are not conversant with all the latest vat rules.
When running a business, it is essential to allow professionals to help you, specially when the task involves lowering your costs legally and dealing with important gov departments. It is vital that you just tie up with an efficient customs and excise vat consultant or agency that offers all import and vat services under one roof so as to enhance your business bottom line.