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 crucial for that you decipher customs and excise vat duties to improve your earnings. If you want to start a trading or manufacturing business in any EU State then it is imperative that you understand 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 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 organization is based in the UK and you plan to import goods from other EU States like Poland, Sweden, Germany, etc a thorough knowledge of uk vat is necessary when you start selling your goods in the local market. In case your services or goods have already incurred eu vat within their home countries before you import it to the UK then you can make an application for vat reclaim in those countries in order to lower your product costs and prevent double taxation.
In the UK, it’s the hm customs and excise department that handles all matters related 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’ll be tracking the sales. Once your sales go over the vat threshold limit of more than �70,000 during 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 as part of 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 your imports and vat returns are handled efficiently. There are several products that attract lower import duties and vat rates, while many will also be vat exempt. It is possible to surely lower your product costs by slotting them within the correct category in addition to claiming vat refunds prior to the 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 goods or services in the UK 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 running a business, it is essential to allow professionals to guide you, especially when the job involves lowering your costs legally and addressing important gov departments. It is vital that you connect with the efficient customs and excise vat consultant or agency which provides all import and vat services under one roof in order to enhance your business net profit.