Your profits could be severely impacted if you fail to factor in important levies that contribute to the buying price of your product or service and this makes it critical for you to decipher customs and excise vat duties to enhance your earnings. If you want to start a trading or manufacturing business in any EU State then it is vital that you comprehend the significance of various duties when you import and sell your goods.
If you want to start importing services and goods to your country then you will need to pay customs duties, excise duties, or import vat on those products or services depending on the classification to which they fall. In case your organization is based in the UK and you also plan to import goods from other EU States like Poland, Sweden, Germany, etc a thorough understanding of uk vat is necessary when you begin selling your goods in the local market. In case your services or goods already have incurred eu vat in 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 decrease your product costs and stop double taxation.
In the UK, it's the hm customs and excise department that handles all matters related 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 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's also the hm revenue and customs department that will be tracking your sales. Once your sales go over the vat threshold limit of over £70,000 in the past 12 months then you may have to get vat registered.
Vat registration won't just allow you to charge vat to the 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 ought to be employed to ensure 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. You can surely lower 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 generally be fatal to your business. You will not only 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 services or goods in the united kingdom or perhaps the country of origin. You could also miss out on a real vat refund if you are not conversant with the latest vat rules.
When operating a business, it is important to allow professionals to help you, specially when the job involves reducing your costs legally and dealing with important government departments. It is vital that you tie up with an efficient customs and excise vat consultant or agency that offers all import and vat services in one place so as to enhance your business net profit.