If you plan to start out a small 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 your costs satisfy your predictions. You possibly can surely ensure improved profits when 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 services and goods in the UK, and also handles vat returns filed by vat registered traders in the country. As soon as your taxable sales cross 70,000 pounds in 12 months you might have to get vat registration. Thus allows you to get a vat number and generate a vat invoice for each sale made in the local market. You will now ought to file a vat return in the designated period and pay vat in line with the current vat rate based on your sales.
However, before you begin selling your services or goods, you might need to import them into the UK. Your goods will in all probability fall into on the list of 14,000 hm customs vat classifications and you will need to pay the appropriate duties on those goods. In the event you plan to import tobacco or alcohol products then you’ll have to pay excise duties on the same. Its thus very important to be sure of the appropriate classification of your goods so that you end up paying the exact amount of duties specified on it instead of paying more and increasing your costs or paying less and getting into trouble at a later date.
Once you have paid all the relevant import vat, or customs, or excise duties then you’ll also need to charge the right vat rates while selling those goods locally. Your products might attract the standard vat rate of 17.5% or perhaps a reduced rate of 5% or even be vat exempt based on its classification. This rate will certainly vary in other EU countries and thus 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 might be very difficult that you keep updating your knowledge on changes happening in customs and vat rates, make sure you 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 plus file your vat returns on time. Your agent would likewise be able to assist you in vat registration and provide other vat services in case your business recently been established.
If you are planning to import goods into the UK or in any other 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 your 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 in order to retain complete control over your costs.