Your profits could be severely impacted if you don’t factor in important levies that contribute to the cost of your product or service and this makes it critical for you to decipher customs and excise vat duties to enhance your earnings https://vatnumbers.com. If you wish 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 wish to start importing services and goods to your country then you will need to pay customs duties, excise duties, or import vat on those services or products depending on the classification under which they fall. If your business is based in the UK and you plan to import goods from other EU States like Poland, Sweden, Germany, etc then a thorough understanding of uk vat is important when you start selling your goods in the local market. If your services or goods have already 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 in order to decrease your product costs and prevent double taxation.
In the UK, it is the hm customs and excise department that handles all matters related to customs and excise vat on products and services imported and sold within 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 is the hm revenue and customs department that’ll be tracking the sales. Once your sales go over the vat threshold limit of over £70,000 during the past 12 months then you may need 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 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 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 many will also be vat exempt. You can surely lower your product costs by slotting them within the correct category in addition to claiming vat refunds well before the time limit.
Failure to pay the importance of customs and excise vat duties could prove to generally be fatal to your business visit website. 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 united kingdom or even in the country of origin. You could also lose out on a legitimate vat refund if you are not 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 dealing with important government departments. It is very important that you connect with the efficient customs and excise vat consultant or agency that offers all import and vat services in one place so as to enhance your business bottom line.
