Your profit margins could be severely impacted if you don’t take into account important levies that play a role in the buying price of your products and this makes it crucial for you to decipher customs and excise vat duties to enhance your revenue. If you want to begin a trading or manufacturing business in a EU State then it is imperative that you comprehend the importance of various duties when you import and sell your goods.
If you want to start importing services and goods into your country then you will have 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 organization is located in the UK and you intend to import goods from other EU States such as Poland, Sweden, Germany, etc then a thorough knowledge of uk vat is important when you start selling your goods in the local market. If your goods or services already have incurred eu vat within 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 stop double taxation.
In the united kingdom, it is the hm customs and excise department that handles all matters related to customs and excise vat on goods and services imported and sold within 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’re sold locally and it’s also 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 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 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 of your imports and vat returns are handled efficiently. There are several goods that attract lower import duties and vat rates, while some will also be vat exempt. You can surely reduce your product costs by slotting them in the correct category as well as claiming vat refunds well before time limit.
Failure to pay the importance 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 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 united kingdom or even in 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 task involves reducing your costs legally and dealing with important government departments. It is very important that you just connect with the efficient customs and excise vat consultant or agency which provides all import and vat services in one place in order to improve your business bottom line.