Your profits could be severely impacted if you don’t take into account important levies that play a role in the cost of your product or service and this makes it critical for you to decipher customs and excise vat duties to improve your revenue. If you wish to begin a trading or manufacturing business in any EU State then it’s vital that you comprehend the significance of various duties when you import and then sell your goods.
If you want to start importing goods and services into your country then you will need to pay customs duties, excise duties, or import vat on those products or services depending on the classification under which they fall. In case your business is located in the UK and you also intend to import goods from other EU States like Poland, Sweden, Germany, etc a thorough knowledge of uk vat is important when you start selling your goods in the local market. If your goods or services have already incurred eu vat within their home countries before you decide to import it to the UK then you can certainly apply for vat reclaim in those countries so as to lower your product costs and prevent double taxation.
In the united kingdom, it is 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 most 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 will be tracking your sales. As soon as your sales cross over the vat threshold limit of more than �70,000 in the past 1 year then you may have to get vat registered.
Vat registration won’t just allow you to charge vat to your clients in 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. A skilled 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 numerous goods that attract lower import duties and vat rates, while many are also vat exempt. It is possible to surely lower your product costs by slotting them in the correct category as well as claiming vat refunds prior to time limit.
Failure to cover the significance of customs and excise vat duties could prove to generally be fatal for your business. You won’t just end up with 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 services or goods in the UK or perhaps the land of origin. You might lose out on a legitimate vat refund if you are not conversant with all the latest vat rules.
When operating a business, it is essential to allow professionals to guide you, especially when the task involves lowering your costs legally and dealing with important gov departments. It is very important that you connect with the efficient customs and excise vat consultant or agency that offers all import and vat services in one place in order to improve your business net profit.