Your profits 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 that you 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 significance of various duties when you import and sell your goods.
If you wish to start importing goods and services to your country then you will need to pay customs duties, excise duties, or import vat on those services or products dependant upon the classification under which they fall. If your business is based in the UK and you plan to import goods from other EU States such as Poland, Sweden, Germany, etc then a thorough understanding of uk vat is necessary when you begin selling your goods in the local market. In case your goods or services already have 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 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 products 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 is the hm revenue and customs department that will be tracking your sales. Once your sales cross over the vat threshold limit of over �70,000 during the past 12 months then you may have to get vat registered.
Vat registration will not only allow you to charge vat to your clients in your vat invoice but also permit you to claim a vat refund in case 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 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. You can surely lower your product costs by slotting them in the correct category as well as claiming vat refunds prior to time limit.
Failure to pay the significance of customs and excise vat duties could prove to generally be fatal for your business. You will not only end up having higher product costs but also in case you end up causing losses to the vat customs and excise department then you may 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 legitimate vat refund if you are not conversant with the latest vat rules.
When running a business, it is essential to allow professionals to help you, specially when the task involves lowering your costs legally and addressing important government departments. It is very important that you tie up with an efficient customs and excise vat consultant or agency that offers all import and vat services in one place in order to enhance your business net profit.