If you plan to start out a business in the UK and wish to import goods to the country then you should make sure you pay proper customs vat on imported goods so that your costs match your predictions. You possibly can surely ensure improved profit margins when your purchase and sale price are usually in tune with your calculations.
The hm revenue and customs department or hmrc vat department handles duties on imported services and goods in the UK, and also handles vat returns filed by vat registered traders in the united kingdom. Once your taxable sales cross 70,000 pounds in Twelve months then you may need to get vat registration. This in turn will allow you to get a vat number and generate a vat invoice for each sale made in the regional market. You will now need to file a vat return in the designated period and pay vat based on the current vat rate based upon the sales.
However, before you begin selling your goods or services, you may want to import them to the UK. Your goods will most probably fall under on the list of 14,000 hm customs vat classifications and you will need to pay the appropriate duties on those goods. In case you want to import tobacco or alcohol products then you’ll have to pay excise duties on the same. It is thus extremely important to check on the correct classification of your goods so you end up paying the exact level of duties specified on it rather than pay more and boosting your costs or paying less and having into trouble at a later date.
Once you have paid all the relevant import vat, or customs, or excise duties then you will also have to charge the appropriate vat rates while selling those goods locally. Your products might attract the conventional vat rate of 17.5% or perhaps a reduced rate of 5% or even be vat exempt depending on its classification. This rate will certainly vary in other EU countries and therefore you ought to have up-to-date knowledge on uk vat and eu vat rates while importing or exporting your goods or even selling them locally.
Simply because it might be quite challenging that you keep updating your knowledge on changes taking place in customs and vat rates, you should appoint a capable customs and vat agent to manage your import and sales duties. Your agent would look after all paperwork in connection with customs duties, check on whether your products are classified correctly, calculate all vat figures and also file your vat returns in time. Your agent would likewise be able to help you in vat registration and offer other vat services if your business has just been established.
If you plan to import goods into the UK or in another EU country then a detailed knowledge on all vat rules, customs and excise duties, and procedures on vat returns is vital for healthy business growth. One mistake could result in earning the wrath of the customs and excise vat department and put a spanner on future vat refunds. While importing goods to your country you ought to certainly make sure you pay proper customs vat on imported goods in order to retain complete control of your costs.