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 enhance your revenue. If you want to start a trading or manufacturing business in any EU State then it's imperative that you understand the importance of various duties whenever you import and sell your goods.
If you want to start importing goods and services to your country then you'll need to pay customs duties, excise duties, or import vat on those products or services dependant upon the classification to which they fall. If your business is located in the UK and you intend to import goods from other EU States such as Poland, Sweden, Germany, etc then a thorough knowledge of uk vat is important 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 certainly make an application for vat reclaim in those countries in order to lower your product costs and stop double taxation.
In the united kingdom, it is 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 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 will be tracking your sales. Once your sales go over the vat threshold limit of more than £70,000 in the past 1 year then you may need 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 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 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 will also be vat exempt. You can surely reduce your product costs by slotting them in the correct category as well as claiming vat refunds well before time limit.
Failure to cover the significance of customs and excise vat duties could prove to generally be fatal for your business. You won't just end up having 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 goods or services in the UK or even in the land of origin. You might miss out on a real 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 gov 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 so as to enhance your business bottom line.