Your profits could be severely impacted if you don’t factor in important levies that play a role in the buying price of your products which makes it crucial for that you decipher customs and excise vat duties to enhance your earnings. 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 whenever you import and then sell your goods.
If you want to start importing goods and services to your country then you’ll need 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 based in the UK and you intend to import goods from other EU States such as Poland, Sweden, Germany, etc then a thorough understanding of uk vat is important when you begin selling your goods in the local market. If your services or goods already have 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 decrease your product costs and prevent 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 in 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 into 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. As soon as your sales go over the vat threshold limit of over £70,000 in the past 12 months you might have to get vat registered.
Vat registration won’t just allow you to charge vat to your 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 numerous products that attract lower import duties and vat rates, while some are also vat exempt. You can surely lower your product costs by slotting them within the correct category as well as claiming vat refunds well before time limit.
Failure to cover 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 in case you end up causing losses towards vat customs and excise department then you could be booked for fraudulently importing or selling goods or services in the united kingdom or perhaps the land of origin. You might lose out on a real vat refund if you aren’t conversant with the latest vat rules.
When running a business, it is important to allow professionals to guide you, especially when the task involves lowering your costs legally and addressing important government departments. It is very important that you just 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 bottom line.