If you plan to start a business in the UK and want to import goods into the country then you certainly should make sure you pay proper customs vat on imported goods so your costs satisfy your predictions. You can surely ensure improved profits if 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 goods and services in 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 12 months then you may need to get vat registration. Thus allows you to get a vat number and generate a vat invoice for each sale made in the regional market. You will now ought to file a vat return at the designated period and pay vat in line with the current vat rate based upon the sales.
However, before you begin selling your goods or services, you may want to import them into the UK. Your goods will in all probability fall under one of the 14,000 hm customs vat classifications and you’ll vatcheck need to pay the suitable duties on those goods. In the event you want to import tobacco or alcohol products then you will need to pay excise duties on the same. It really is thus extremely important to check on the appropriate classification of your goods so you end up making payment on the exact amount of duties specified on it rather than pay more and boosting your costs or paying less and having into trouble later on.
After you have paid all of 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 merchandise might attract the standard vat rate of 17.5% or perhaps a reduced rate of 5% or maybe be vat exempt based on its classification. This rate will certainly 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 as well as selling them locally.
Simply because it might be very difficult for you to keep updating your knowledge on changes happening in customs and vat rates, you should appoint a good customs and vat agent to manage all your import and sales duties. Your agent would look after all paperwork related to customs duties, evaluate whether your goods are classified correctly, calculate all vat figures plus file your vat returns in time. Your agent would likewise be able to assist you in vat registration and provide other vat services in case 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 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 be sure you pay proper customs vat on imported goods so as to retain complete control of your costs.