If you plan to start a business in the UK and wish 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 possibly can surely ensure improved profit margins if your purchase and sale price are in tune with your calculations.
The hm revenue and customs department or hmrc vat department handles duties on imported goods and services into 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 12 months you might have to get vat registration. Thus will allow you to get a vat number and generate a vat invoice for each sale made in the local market. You’ll now ought 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 begin selling your services or goods, 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 have to pay the suitable duties on those goods. In the event you plan to import tobacco or alcohol products then you’ll need to pay excise duties on the same. Its thus very important to check on the appropriate classification of your goods so that you find yourself making payment on the exact amount of duties specified on it instead of paying more and boosting your costs or paying less and having into trouble at a later date.
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 conventional vat rate of 17.5% or 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 as well as selling them locally.
Since it may be very difficult for you to keep updating your understanding 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 related to customs duties, evaluate whether your goods are classified correctly, calculate all vat figures plus file your vat returns on time. Your agent would likewise be able to assist you in vat registration and provide other vat services if your business has just been established.
If you are planning to import goods to 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 vital for healthy business growth. One mistake could result in earning the wrath of your customs and excise vat department and put a spanner on future vat refunds. While importing goods to your country you ought to certainly be sure you pay proper customs vat on imported goods so as to retain complete control over your costs.