Your profit margins could be severely impacted if you don’t take into account important levies that contribute to the cost of your products and this makes it crucial for you to decipher customs and excise vat duties to enhance your earnings http://vatverification.com. If you wish to start a trading or manufacturing business in a EU State then it is vital that you understand the significance of various duties whenever you import and sell your goods.
If you wish to start importing goods and services to your country then you’ll need to pay customs duties, excise duties, or import vat on those services or products depending on the classification under which they fall. In case your business is based 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 necessary when you begin selling your goods in the local market. In case your services or goods have already incurred eu vat within their home countries before you decide to import it to the UK then you can certainly apply 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 within one of the 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 to 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 will be tracking your sales. Once your sales cross over the vat threshold limit of more than £70,000 in the past 1 year then you may have to get vat registered.
Vat registration will not only allow you to charge vat to your clients in 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 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. It is possible to 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 pay the significance of customs and excise vat duties could prove to generally be fatal for your business. You won’t just 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 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 important to allow professionals to help you, specially when the job involves lowering your costs legally and dealing with important gov departments. It is vital that you just tie up 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.