Your profit margins could be severely impacted if you fail to factor in important levies that contribute to the buying price of your product or service and this makes it crucial for that you decipher customs and excise vat duties to enhance your earnings. If you want to start a trading or manufacturing business in any EU State then it is vital that you understand the significance of various duties when you import and sell your goods.
If you want to start importing services and goods to your country then you will have to pay customs duties, excise duties, or import vat on those products or services dependant upon the classification to which they fall. If your organization is located in the UK and you intend 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 within their home countries before you import it to the UK then you can make an application for vat reclaim in those countries so as to decrease your product costs and prevent double taxation.
In the united kingdom, it’s the hm customs and excise department that handles all matters linked 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 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. As soon as your sales cross over the vat threshold limit of more than �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 additionally permit 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 several products that attract lower import duties and vat rates, while many 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 cover the importance of customs and excise vat duties could prove to generally 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 could be booked for fraudulently importing or selling services or goods in the UK or perhaps the country of origin. You might miss out on a real vat refund if you are not conversant with the latest vat rules.
When running a business, it is essential to allow professionals to guide you, especially when the task involves lowering your costs legally and dealing with important government departments. It is very important that you 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 enhance your business bottom line.