Your profits could be severely impacted if you don’t take into account important levies that play a role in the cost of your product or service and this can make it critical for you to decipher customs and excise vat duties to improve your revenue vatverification. If you wish to start a trading or manufacturing business in any EU State then it’s imperative that you understand the importance of various duties whenever you import and 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 dependant upon the classification under which they fall. If your organization is based in the UK and you plan to import goods from other EU States such as Poland, Sweden, Germany, etc then a thorough knowledge 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 within their home countries before you decide to import it to the UK then you can apply for vat reclaim in those countries in order to lower your product costs and prevent double taxation.
In the united kingdom, 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 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’ll be tracking the sales. As soon as your sales cross over the vat threshold limit of over £70,000 in the past 12 months you might need to get vat registered.
Vat registration won’t just allow you to charge vat to the 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. A skilled customs, excise and vat agent or consultant should be employed so that all your imports and vat returns are handled efficiently. There are several products 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 in the correct category as well as claiming vat refunds prior to time limit.
Failure to cover the significance of customs and excise vat duties could prove to be fatal to your business. You will not only end up having higher product costs but also 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 could also lose out on a real vat refund if you aren’t conversant with the latest vat rules.
When operating a business, it is essential to allow professionals to help you, especially when the task involves lowering your costs legally and addressing important gov departments. It is very important that you just connect with an efficient customs and excise vat consultant or agency which provides all import and vat services in one place in order to improve your business bottom line.