Your profit margins could be severely impacted if you fail to factor in important levies that play a role in the buying price of your products and this can make it crucial for that you decipher customs and excise vat duties to enhance your revenue. If you want to begin a trading or manufacturing business in any EU State then it is vital that you comprehend the importance of various duties whenever you import and 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 to which they fall. In case your business is located in the UK and you plan to import goods from other EU States like Poland, Sweden, Germany, etc then a thorough knowledge of uk vat is necessary when you begin selling your goods in the local market. In case your goods or services have already incurred eu vat in their home countries before you import it to the UK then you can apply for vat reclaim in those countries in order 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 goods and services imported and sold within the country. Most commercial products fall inone of several 14,000 classifications specified by the customs division while many 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’ll be tracking your sales. As soon as your sales cross over the vat threshold limit of over �70,000 in the past 12 months then you may have to get vat registered.
Vat registration will not only allow you to charge vat to the clients in your vat invoice but additionally allow you to claim a vat refund if 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 should be employed so that all your imports and vat returns are handled efficiently. There are numerous goods that attract lower import duties and vat rates, while some are also vat exempt. It is possible to surely lower your product costs by slotting them within the correct category as well as claiming vat refunds well before time limit.
Failure to pay the significance of customs and excise vat duties could prove to be fatal to your business. You won’t just 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 perhaps the country of origin. You might lose out on a real 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 lowering your costs legally and addressing important government departments. It is very important that you tie up with the 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.