Your profits could be severely impacted if you fail to factor in important levies that contribute to the cost of your products and this can make it crucial for that you decipher customs and excise vat duties to improve your revenue. If you want to begin a trading or manufacturing business in a EU State then it’s vital that you understand the importance 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 services or products depending on the classification to 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 then a thorough understanding 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 apply for vat reclaim in those countries so as to lower your product costs and prevent double taxation.
In the united kingdom, 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 inside 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 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 more than �70,000 in the past 1 year 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 in case 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 so that all of your imports and vat returns are handled efficiently. There are numerous goods that attract lower import duties and vat rates, while some will also be vat exempt. You can 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 importance of customs and excise vat duties could prove to generally be fatal to your business. You won’t just end up having higher product costs but also in case you end up causing losses to the vat customs and excise department then you could be booked for fraudulently importing or selling services or goods in the united kingdom or perhaps the land of origin. You could also miss 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 help you, specially when the task involves lowering your costs legally and dealing with important government departments. It is vital that you just tie up with an efficient customs and excise vat consultant or agency that offers all import and vat services under one roof so as to enhance your business net profit.