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 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 a 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 to your country then you’ll have to pay customs duties, excise duties, or import vat on those services or products depending on the classification under which they fall. If your organization is located in the UK and you also plan to import goods from other EU States such as Poland, Sweden, Germany, etc a thorough understanding of uk vat is important when you begin selling your goods in the local market. In case your services or goods already have 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 so as to lower your product costs and prevent 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 inside 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 the sales. As soon as your sales cross over the vat threshold limit of over �70,000 in the past 12 months then you may 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 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 your imports and vat returns are handled efficiently. There are several products that attract lower import duties and vat rates, while some will also be vat exempt. You can surely lower your product costs by slotting them in the correct category as well as claiming vat refunds well before time limit.
Failure to cover the significance of customs and excise vat duties could prove to be fatal for 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 UK or perhaps the country of origin. You could also miss out on a real vat refund if you aren’t conversant with the latest vat rules.
When running a business, it is important to allow professionals to help you, especially when the task involves reducing 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 in order to enhance your business bottom line.