Your profits could be severely impacted if you don’t take into account important levies that contribute to the buying price of your product or service which makes it crucial for you to decipher customs and excise vat duties to improve your revenue. If you wish to begin a trading or manufacturing business in a EU State then it’s vital that you comprehend the significance of various duties when you import and then sell your goods.
If you want to start importing goods and services to your country then you’ll have 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 organization is based 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 necessary when you start selling your goods in the local market. In case your goods or services already have incurred eu vat in their home countries before you decide to 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 united kingdom, it is 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 withinone of several 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 into 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 go over the vat threshold limit of more than £70,000 during the past 1 year then you may need to get vat registered.
Vat registration will not only allow you to charge vat to your clients in your vat invoice but also 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 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 are also vat exempt. It is possible to surely lower your product costs by slotting them within the correct category as well as claiming vat refunds well before the time limit.
Failure to pay the importance of customs and excise vat duties could prove to generally be fatal to your business. You won’t just 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 goods or services in the UK or perhaps the country of origin. You might lose out on a legitimate vat refund if you aren’t conversant with the latest vat rules.
When operating a business, it is important to allow professionals to guide you, especially when the job involves lowering your costs legally and addressing important gov departments. It is very important that you tie up with the efficient customs and excise vat consultant or agency that offers all import and vat services under one roof in order to improve your business net profit.