Your profits could be severely impacted if you don’t factor in important levies that contribute to the buying price of your product or service and this can make it critical 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’s imperative that you understand the importance 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 to which they fall. In case your business is located 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 start 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 certainly apply for vat reclaim in those countries so as to lower your product costs and stop double taxation.
In the united kingdom, 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 inside the country. Most commercial products fall in one of the 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 vatvalidation to the UK. Most products also attract sales vat or value added tax when they are 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 more than £70,000 in the past 1 year then you may need to get vat registered.
Vat registration won’t just allow you to charge vat to the clients in your vat invoice but additionally 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 should be employed to ensure 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 will also be vat exempt. It is possible to surely lower your product costs by slotting them in the correct category as well as claiming vat refunds prior to the 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 towards vat customs and excise department then you may be booked for fraudulently importing or selling goods or services in the united kingdom or even in the land of origin. You might lose out on a legitimate vat refund if you are not conversant with the latest vat rules.
When operating a business, it is important to allow professionals to guide you, especially when the task involves reducing your costs legally and addressing important government departments. It is vital that you tie up with an efficient customs and excise vat consultant or agency which provides all import and vat services in one place in order to enhance your business net profit.