Your profits could be severely impacted if you fail to factor in important levies that contribute to the buying price of your product or service which can make it crucial for that you decipher customs and excise vat duties to enhance your earnings. If you want to begin 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 then sell your goods.
If you wish to start importing services and goods to your country then you will have to pay customs duties, excise duties, or import vat on those services or products depending on the classification under 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 a thorough knowledge of uk vat is important when you begin selling your goods in the local market. If your services or goods have already incurred eu vat in their home countries before you import it to the UK then you can certainly make an application for vat reclaim in those countries in order to lower your product costs and stop double taxation.
In the UK, 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 inside the country. Most commercial products fall inone 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 are sold locally and it is the hm revenue and customs department that will be tracking the sales. As soon as your sales cross over the vat threshold limit of over £70,000 during the past 12 months you might need to get vat registered.
Vat registration will not only 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. 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 numerous goods that attract lower import duties and vat rates, while many will also be vat exempt. It is possible to surely reduce your product costs by slotting them within the correct category as well as claiming vat refunds well before 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 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 even in the country of origin. You might lose out on a real vat refund if you are not conversant with all the latest vat rules.
When operating 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 just tie up with an efficient customs and excise vat consultant or agency which provides all import and vat services in one place so as to improve your business bottom line.