Your profits 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 begin a trading or manufacturing business in a EU State then it is imperative that you comprehend the significance of various duties whenever you import and sell your goods.
If you want to start importing services and goods to your country then you will have to pay customs duties, excise duties, or import vat on those services or products dependant upon the classification to which they fall. If your organization is located in the UK and you intend to import goods from other EU States like Poland, Sweden, Germany, etc a thorough knowledge of uk vat is necessary when you begin selling your goods in the local market. If your services or goods have already 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 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 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 the sales. Once your sales go over the vat threshold limit of more than £70,000 in the past 1 year 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 permit 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 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 many are also vat exempt. You can surely reduce your product costs by slotting them in the correct category in addition to claiming vat refunds well before the time limit.
Failure to cover the significance of customs and excise vat duties could prove to generally be fatal to your business. You will not only end up with 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 land of origin. You could also miss out on a legitimate vat refund if you aren’t conversant with all the latest vat rules.
When operating a business, it is essential to allow professionals to guide you, especially when the job involves reducing your costs legally and addressing important government departments. It is vital that you tie up with the efficient customs and excise vat consultant or agency which provides all import and vat services in one place in order to enhance your business net profit.