Your profits could be severely impacted if you don’t take into account important levies that contribute to the cost of your product or service and this makes it critical for that you decipher customs and excise vat duties to improve your revenue. If you want to start a trading or manufacturing business in a EU State then it’s imperative that you comprehend the significance of various duties when you import and then sell your goods.
If you wish to start importing services and goods into 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. In case your organization is based in the UK and you plan to import goods from other EU States like Poland, Sweden, Germany, etc a thorough knowledge of uk vat is important when you begin 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 make an application for vat reclaim in those countries in order to decrease your product costs and prevent double taxation.
In the UK, 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 within the country. Most commercial products fall within 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 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 in the past 1 year you might need to get vat registered.
Vat registration won’t just allow you to charge vat to your clients as part of 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. A skilled 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 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 in addition to claiming vat refunds well before time limit.
Failure to cover the significance of customs and excise vat duties could prove to be fatal for your business. You won’t just end up having 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 goods or services in the UK or even in the country of origin. You might lose out on a legitimate vat refund if you aren’t conversant with the latest vat rules.
When running a business, it is essential to allow professionals to guide you, specially when the job involves lowering your costs legally and addressing important gov departments. It is vital that you just tie up with the efficient customs and excise vat consultant or agency that offers all import and vat services in one place in order to enhance your business bottom line.