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 which can make it critical for you to decipher customs and excise vat duties to enhance your earnings vatverification. If you want to start a trading or manufacturing business in a EU State then it is vital that you understand the significance of various duties when 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 to which they fall. If your business is based in the UK and you also intend to import goods from other EU States like Poland, Sweden, Germany, etc a thorough understanding of uk vat is important when you begin selling your goods in the local market. If your goods or services already have incurred eu vat in their home countries before you import it to the UK then you can 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 goods and services imported and sold inside the country. Most commercial products fall inone of several 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're sold locally and it's also the hm revenue and customs department that'll be tracking the sales. As soon as your sales go over the vat threshold limit of more than £70,000 in the past 12 months you might have to get vat registered.
Vat registration won't just allow you to charge vat to your clients in your vat invoice but additionally allow you to claim a vat refund if 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 ought to be employed to ensure that all of your imports and vat returns are handled efficiently. There are several goods that attract lower import duties and vat rates, while many will also be vat exempt. You can surely lower your product costs by slotting them within the correct category as well as claiming vat refunds well before time limit.
Failure to cover the importance of customs and excise vat duties could prove to be fatal to your business. You won't just end up having higher product costs but in case you end up causing losses towards vat customs and excise department then you may be booked for fraudulently importing or selling services or goods in the united kingdom or perhaps the land of origin. You might miss out on a legitimate vat refund if you aren't conversant with the latest vat rules.
When running a business, it is important to allow professionals to guide you, especially when the job involves reducing your costs legally and addressing important gov departments. It is vital that you tie up with the efficient customs and excise vat consultant or agency that offers all import and vat services under one roof so as to enhance your business bottom line.