Your profit margins could be severely impacted if you fail to factor in important levies that play a role in the buying price of your products which can make it critical for you to decipher customs and excise vat duties to improve your revenue. If you want to start a trading or manufacturing business in any EU State then it is imperative that you comprehend the importance of various duties when you import and sell your goods.
If you want to start importing goods and services to your country then you will have to pay customs duties, excise duties, or import vat on those services or products depending on the classification under which they fall. If your organization is located in the UK and you plan to import goods from other EU States such as Poland, Sweden, Germany, etc a thorough understanding of uk vat is necessary when you start selling your goods in the local market. If your goods or services have already incurred eu vat within their home countries before you decide to import it to the UK then you can certainly apply for vat reclaim in those countries so as 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 related to customs and excise vat on goods 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 https://vatvalidation.com into the UK. Most products also attract sales vat or value added tax when they are 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 over £70,000 in the past 12 months you might need to get vat registered.
Vat registration will not only allow you to charge vat to the clients in your vat invoice but additionally 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 of your imports and vat returns are handled efficiently. There are numerous products that attract lower import duties and vat rates, while some are also vat exempt. You can 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 cover the significance of customs and excise vat duties could prove to be fatal to your business. You won’t just end up having higher product costs but in case you end up causing losses to the vat customs and excise department then you could be booked for fraudulently importing or selling goods or services in the united kingdom or perhaps the land of origin. You could also miss out on a real vat refund if you aren’t conversant with all the latest vat rules.
When running a business, it is important to allow professionals to help you, specially when the job involves reducing your costs legally and dealing with important government departments. It is vital that you tie up with the 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.