Your profit margins could be severely impacted if you don’t take into account important levies that contribute to the buying price of your products which makes it critical for that you decipher customs and excise vat duties to improve your revenue. If you wish to begin a trading or manufacturing business in any EU State then it’s vital that you understand the significance of various duties whenever 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 under which they fall. In case your organization is located in the UK and you also intend to import goods from other EU States such as Poland, Sweden, Germany, etc then a thorough understanding of uk vat is necessary when you begin selling your goods in the local market. In case your goods or services have already incurred eu vat within their home countries before you import it to the UK then you can apply for vat reclaim in those countries in order to decrease your product costs and stop double taxation.
In the UK, it is 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 inone 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 to the UK. Most products also attract sales vat or value added tax when they’re sold locally and it is the hm revenue and customs department that’ll be tracking the sales. As soon as your sales cross over the vat threshold limit of more than £70,000 during the past 12 months you might have to get vat registered.
Vat registration will not only allow you to charge vat to your clients in your vat invoice but also 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. An experienced customs, excise and vat agent or consultant should be employed so that all 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. It is possible to surely reduce your product costs by slotting them in 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 be fatal for your business. You will not only end up having 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 UK or perhaps the land 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 essential to allow professionals to guide you, specially when the task involves lowering your costs legally and addressing important gov departments. It is very important that you just tie up with the efficient customs and excise vat consultant or agency that offers all import and vat services in one place in order to enhance your business net profit.