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 product or service and this can make it critical for that you decipher customs and excise vat duties to enhance your revenue. If you wish to start a trading or manufacturing business in a 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 goods and services to your country then you will have to pay customs duties, excise duties, or import vat on those products or services depending on the classification to which they fall. If your organization is located in the UK and you intend to import goods from other EU States such as Poland, Sweden, Germany, etc then a thorough understanding of uk vat is important when you start selling your goods in the local market. If your services or goods already have incurred eu vat in their home countries before you decide to 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 prevent double taxation.
In the united kingdom, it is the hm customs and excise department that handles all matters related 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 vatvalidation.com to the UK. Most products also attract sales vat or value added tax when they are sold locally and it’s also the hm revenue and customs department that will be tracking your sales. As soon as your sales go over the vat threshold limit of more than £70,000 during the past 12 months 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 additionally 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 your imports and vat returns are handled efficiently. There are numerous goods that attract lower import duties and vat rates, while many are also vat exempt. You can surely reduce your product costs by slotting them in the correct category in addition to claiming vat refunds prior to the time limit.
Failure to pay the significance of customs and excise vat duties could prove to be fatal for your business. You will not only end up with 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 UK or perhaps the country of origin. You could also miss out on a legitimate vat refund if you aren’t conversant with all the latest vat rules.
When operating a business, it is important to allow professionals to guide you, especially when the job involves reducing your costs legally and dealing with important government departments. It is vital that you connect 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.