Your profit margins could be severely impacted if you fail to take into account important levies that play a role in the buying price of your products which makes it crucial for that you decipher customs and excise vat duties to improve your earnings. If you wish to begin a trading or manufacturing business in a EU State then it is vital that you comprehend the significance of various duties when you import and sell your goods.
If you wish to start importing services and goods into your country then you’ll have to pay customs duties, excise duties, or import vat on those services or products dependant upon the classification to which they fall. In case your business 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. If 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 apply for vat reclaim in those countries in order to lower your product costs and stop 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 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’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 more than £70,000 during the past 1 year you might need to get vat registered.
Vat registration will not only allow you to charge vat to your clients as part of 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. 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 several products that attract lower import duties and vat rates, while many will also be vat exempt. You can surely reduce your product costs by slotting them within the correct category as well as claiming vat refunds prior to 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 may be booked for fraudulently importing or selling services or goods in the united kingdom or perhaps the country of origin. You could also miss out on a legitimate vat refund if you are not conversant with all the latest vat rules.
When running a business, it is important to allow professionals to guide you, especially when the task involves lowering your costs legally and addressing important government departments. It is very important that you just tie up with the efficient customs and excise vat consultant or agency which provides all import and vat services in one place in order to enhance your business net profit.