Your profits could be severely impacted if you fail to factor in important levies that contribute to the buying price of your products and this can make it crucial for that you decipher customs and excise vat duties to enhance your earnings. If you want to begin a trading or manufacturing business in a EU State then it’s vital that you comprehend the significance of various duties whenever you import and sell your goods.
If you want to start importing goods and services into your country then you will have to pay customs duties, excise duties, or import vat on those products or services dependant upon the classification under which they fall. If your business is located in the UK and you also intend to import goods from other EU States such as Poland, Sweden, Germany, etc a thorough knowledge of uk vat is important when you begin selling your goods in the local market. In case your services or goods already have incurred eu vat in 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 decrease your product costs and prevent 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 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 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 will be tracking your sales. Once your sales go over the vat threshold limit of over �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 your 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. An experienced customs, excise and vat agent or consultant ought to be employed to ensure that all 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. You can surely lower your product costs by slotting them in the correct category in addition to claiming vat refunds well before the time limit.
Failure to pay the significance of customs and excise vat duties could prove to generally be fatal to your business. You will not only 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 UK or even in the land of origin. You might lose out on a real vat refund if you aren’t conversant with all the latest vat rules.
When operating a business, it is important to allow professionals to help you, especially when the task involves reducing your costs legally and dealing with important gov departments. It is very important that you connect with an efficient customs and excise vat consultant or agency which provides all import and vat services under one roof so as to improve your business bottom line.