Your profits could be severely impacted if you don’t factor in important levies that contribute to the cost of your product or service and this can make it critical for you to decipher customs and excise vat duties to enhance your revenue. If you want to start a trading or manufacturing business in any EU State then it is imperative that you comprehend the significance of various duties when you import and sell your goods.
If you want to start importing goods and services into your country then you’ll have to pay customs duties, excise duties, or import vat on those products or services dependant upon the classification under which they fall. If your business is located in the UK and you intend to import goods from other EU States like Poland, Sweden, Germany, etc a thorough understanding of uk vat is important when you start 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 apply for vat reclaim in those countries in order to lower your product costs and stop double taxation.
In the UK, it’s the hm customs and excise department that handles all matters linked to customs and excise vat on goods 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 vatvalidation.com 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. Once your sales cross over the vat threshold limit of more than £70,000 in the past 12 months then you may have to get vat registered.
Vat registration won’t just 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. A skilled customs, excise and vat agent or consultant should be employed to ensure that all 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 lower your product costs by slotting them within 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 generally be fatal to 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 may be booked for fraudulently importing or selling services or goods in the united kingdom or perhaps 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 important to allow professionals to guide you, especially when the task involves reducing your costs legally and dealing with important gov departments. It is very important that you connect with the efficient customs and excise vat consultant or agency that offers all import and vat services under one roof in order to enhance your business bottom line.