Your profit margins could be severely impacted if you don’t take into account important levies that contribute to the cost of your product or service and this makes it critical for that you decipher customs and excise vat duties to improve your revenue. If you wish to start a trading or manufacturing business in any EU State then it is vital that you comprehend the importance of various duties when you import and sell your goods.
If you want to start importing goods and services into your country then you will need to pay customs duties, excise duties, or import vat on those products or services depending on the classification under which they fall. If your business is located in the UK and you plan to import goods from other EU States such as Poland, Sweden, Germany, etc then a thorough knowledge 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 within their home countries before you decide to import it to the UK then you can certainly apply for vat reclaim in those countries so as to lower 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 within 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 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’ll be tracking the sales. Once your sales cross over the vat threshold limit of over �70,000 in the past 12 months then you may have to get vat registered.
Vat registration will not only allow you to charge vat to your clients as part of 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. A skilled customs, excise and vat agent or consultant should be employed so that all your imports and vat returns are handled efficiently. There are several goods that attract lower import duties and vat rates, while some are also 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 cover 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 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 country of origin. You might miss out on a real vat refund if you are not conversant with all the latest vat rules.
When running a business, it is essential to allow professionals to help you, especially when the task involves lowering your costs legally and addressing important government departments. It is vital that you connect with the efficient customs and excise vat consultant or agency that offers all import and vat services under one roof so as to improve your business bottom line.