Your profits could be severely impacted if you don’t take into account important levies that contribute to the buying price of your products which can make it critical for you to decipher customs and excise vat duties to improve your revenue. If you want to begin a trading or manufacturing business in any EU State then it is vital that you understand the importance of various duties whenever 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 services or products depending on the classification to which they fall. If your business is based in the UK and you plan to import goods from other EU States like Poland, Sweden, Germany, etc then a thorough understanding of uk vat is important 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 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 products and services imported and sold inside the country. Most commercial products fall inone 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’re sold locally and it’s also the hm revenue and customs department that will be tracking the sales. As soon as your sales go over the vat threshold limit of more than £70,000 in the past 1 year 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 additionally 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 should 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. It is possible to surely reduce your product costs by slotting them within the correct category as well as claiming vat refunds well before the time limit.
Failure to cover the importance of customs and excise vat duties could prove to be fatal for your business. You will not only end up having higher product costs but also in case you end up causing losses to the vat customs and excise department then you could be booked for fraudulently importing or selling goods or services in the UK or perhaps the country of origin. You might lose out on a legitimate vat refund if you aren’t conversant with the latest vat rules.
When operating a business, it is essential to allow professionals to help you, especially when the job involves lowering your costs legally and dealing with important gov departments. It is very important that you connect with an efficient customs and excise vat consultant or agency that offers all import and vat services in one place in order to enhance your business bottom line.