If you plan to start a small business in britain and want to import goods to the country then you must ensure you pay proper customs vat on imported goods so your costs satisfy your predictions. You can surely ensure improved profits when your purchase and sale price are in tune
with all your calculations.
The hm revenue and customs department or hmrc vat department handles duties on imported services and goods into the UK, and in addition handles vat returns filed by vat registered traders in the united kingdom. As soon as your taxable sales cross 70,000 pounds in Twelve months you might need to get vat registration. Thus will allow you to obtain a vat number and generate a vat invoice for every sale made in the regional market. You’ll now need to file a vat return at the designated period and pay vat based on the current vat rate based upon the sales.
However, before you start selling your services or goods, you may want to import them to the UK. Your goods will in all probability 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 need to pay excise duties on the very same. It is thus extremely important to check on the correct classification of your goods so that you end up making payment on the exact level of duties specified on it rather than pay more and increasing your costs or paying less and getting into trouble at a later date.
Once you have paid all of the relevant import vat, or customs, or excise duties then you will also have to charge the right vat rates while selling those goods locally. Your merchandise might attract the conventional vat rate of 17.5% or perhaps a lower rate of 5% or maybe be vat exempt based on its classification. This rate will definitely vary in other EU countries and thus you should have up-to-date knowledge on uk vat and eu vat rates while importing or exporting your goods or even selling them locally.
Since it might be quite challenging that you keep updating your knowledge on changes happening in customs and vat rates, you should appoint a capable customs and vat agent to handle your import and sales duties. Your agent would take care of 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 on time. Your agent would likewise be able to assist you in vat registration and offer other vat services in case your business has just been established.
If you are planning to import goods into the UK or maybe in another EU country a detailed knowledge on all vat rules, customs and excise duties, and procedures on vat returns is critical for healthy business growth. One mistake you could end up earning the wrath of the customs and excise vat department and put a spanner on future vat refunds. While importing goods into your country you ought to certainly make sure you pay proper customs vat on imported goods in order to retain complete control over your costs.