Your profits could be severely impacted if you don’t take into account important levies that contribute to the cost of your product or service which makes it crucial for you to decipher customs and excise vat duties to enhance your earnings. If you wish to begin a trading or manufacturing business in a EU State then it is 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 organization is located 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 import it to the UK then you can certainly make an application 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 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 most tobacco and alcohol products will attract excise duties. Many products also attract import vat while being imported www.vatvalidation.com 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. Once your sales go over the vat threshold limit of more than £70,000 during the past 12 months you might have to get vat registered.
Vat registration won’t just allow you to charge vat to the 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 of your imports and vat returns are handled efficiently. There are several products that attract lower import duties and vat rates, while some will also be vat exempt. It is possible to surely reduce your product costs by slotting them within the correct category in addition to claiming vat refunds prior to time limit.
Failure to pay the importance of customs and excise vat duties could prove to generally be fatal to your business. You will not only 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 united kingdom or perhaps the land of origin. You could also lose out on a legitimate 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 task involves reducing your costs legally and dealing with important government departments. It is very important that you tie up with an efficient customs and excise vat consultant or agency that offers all import and vat services in one place in order to enhance your business net profit.