If you plan to start a business in the UK and want to import goods into 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 if 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 goods and services into the UK, and in addition handles vat returns filed by vat registered traders in the country. As soon as your taxable sales cross 70,000 pounds in Twelve months you might need to get vat registration. This in turn allows you to get a vat number and generate a vat invoice for every sale made in the local market. You will now ought to file a vat return in the designated period and pay vat based on the current vat rate based upon your sales.
However, before you begin selling your goods or services, you might need to import them to the UK. Your goods will most probably fall into on the list of 14,000 hm customs vat classifications and you’ll need to pay the suitable duties on those goods. In case you plan to import tobacco or alcohol products then you will need to pay excise duties on the same. Its thus extremely important to be sure of the correct classification of your goods so that 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 later on.
After you have paid all of the relevant import vat, or customs, or excise duties then you will also need to charge the appropriate vat rates while selling those goods locally. Your merchandise might attract the conventional vat rate of 17.5% or a lower rate of 5% or maybe be vat exempt depending 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 or even selling them locally.
Simply because it might be very difficult that you keep updating your understanding on changes happening in customs and vat rates, make sure you appoint a capable customs and vat agent to manage all your import and sales duties. Your agent would take care of all paperwork in connection with customs duties, evaluate whether your products are classified correctly, calculate all vat figures plus file your vat returns on time. Your agent would also 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 maybe in another EU country a detailed knowledge on all vat rules, customs and excise duties, and operations 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 into your country you should certainly make sure you pay proper customs vat on imported goods so as to retain complete control over your costs.