Your profit margins could be severely impacted if you don’t factor in important levies that play a role in the cost of your product or service and this makes it critical for that you decipher customs and excise vat duties to improve your revenue www.vatnumbers.com. If you wish to start a trading or manufacturing business in a EU State then it’s imperative that you comprehend the significance of various duties when you import and then sell your goods.
If you want to start importing services and goods to your country then you will have to pay customs duties, excise duties, or import vat on those products or services dependant upon the classification under which they fall. If your organization is based in the UK and you also plan to import goods from other EU States such as Poland, Sweden, Germany, etc then a thorough understanding of uk vat is necessary when you start selling your goods in the local market. In case your services or goods have already 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 prevent double taxation.
In the united kingdom, 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 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 into 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 cross over the vat threshold limit of more than £70,000 during the past 1 year then you may have to get vat registered.
Vat registration will not only allow you to charge vat to the clients as part of your vat invoice but additionally 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 so that all of your imports and vat returns are handled efficiently. There are numerous goods that attract lower import duties and vat rates, while many 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 well before time limit.
Failure to cover the significance of customs and excise vat duties could prove to generally be fatal to your business our website. You will not only end up having higher product costs but also in case you end up causing losses towards vat customs and excise department then you could be booked for fraudulently importing or selling goods or services in the UK or perhaps the land of origin. You might lose out on a legitimate vat refund if you are not conversant with all the latest vat rules.
When operating a business, it is essential to allow professionals to help you, especially when the task involves lowering your costs legally and addressing important government departments. It is very important that you just tie up with an efficient customs and excise vat consultant or agency which provides all import and vat services under one roof so as to enhance your business net profit.
