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 which can make it critical for you to decipher customs and excise vat duties to improve your revenue vatverification.com. If you want to start a trading or manufacturing business in any EU State then it’s imperative that you comprehend the significance of various duties when you import and then sell your goods.
If you want to start importing services and goods to your country then you’ll have 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 business is based in the UK and you also plan to import goods from other EU States such as Poland, Sweden, Germany, etc a thorough understanding of uk vat is important when you start selling your goods in the local market. In case your services or goods 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 so as 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 to 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. Once your sales cross 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 your clients as part of your vat invoice but additionally allow you to claim a vat refund in case 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 products that attract lower import duties and vat rates, while some are also vat exempt. It is possible to surely reduce your product costs by slotting them in the correct category in addition to claiming vat refunds well before time limit.
Failure to cover the importance of customs and excise vat duties could prove to be fatal for 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 may be booked for fraudulently importing or selling services or goods in the UK or perhaps the land of origin. You could also 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, specially when the task involves lowering your costs legally and dealing with important gov departments. It is very important that you just tie up with an efficient customs and excise vat consultant or agency which provides all import and vat services under one roof so as to enhance your business bottom line.