Your profit margins could be severely impacted if you don’t take into account important levies that play a role in the buying price of your products 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 any EU State then it is imperative that you comprehend the significance of various duties whenever you import and then 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. If your business is located in the UK and you also 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 services or goods have already incurred eu vat in their home countries before you decide to import it to the UK then you can make an application 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 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 into the UK. Most products also attract sales vat or value added tax when they are sold locally and it is 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 during the past 12 months then you may 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 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 reduce your product costs by slotting them within the correct category in addition to claiming vat refunds well before the time limit.
Failure to cover the significance of customs and excise vat duties could prove to generally be fatal to your business. You won’t just end up with higher product costs but also in case you end up causing losses towards vat customs and excise department then you could be booked for fraudulently importing or selling services or goods in the united kingdom or even in the country of origin. You could also lose out on a real vat refund if you are not conversant with the latest vat rules.
When running a business, it is essential to allow professionals to guide you, specially when the job involves lowering your costs legally and addressing important government departments. It is very important that you connect with the efficient customs and excise vat consultant or agency which provides all import and vat services under one roof so as to enhance your business bottom line.