Your profit margins could be severely impacted if you fail to factor in important levies that contribute to the cost of your product or service and this can make it critical for that you decipher customs and excise vat duties to improve your revenue www.vatnumbers.com. If you want to start a trading or manufacturing business in a 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 into your country then you’ll have to pay customs duties, excise duties, or import vat on those services or products depending on the classification under which they fall. In case your organization is based in the UK and you plan to import goods from other EU States like Poland, Sweden, Germany, etc then a thorough knowledge of uk vat is necessary when you begin selling your goods in the local market. If your goods or services have already incurred eu vat in their home countries before you decide to 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 related to customs and excise vat on goods and services imported and sold inside the country. Most commercial products fall in one of the 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 are sold locally and it’s also the hm revenue and customs department that will be tracking your sales. As soon as your sales cross over the vat threshold limit of over £70,000 in the past 1 year 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 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 ought to be employed so that all of 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 lower your product costs by slotting them within the correct category in addition to claiming vat refunds prior to time limit.
Failure to cover the importance of customs and excise vat duties could prove to be fatal for your business useful site. 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 services or goods in the UK or even in the country of origin. You might lose out on a real 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, specially when the job involves lowering your costs legally and dealing with important gov departments. It is vital that you just connect 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 net profit.
