If you plan to start a business in the UK and want to import goods to the country then you must ensure you pay proper customs vat on imported goods so your costs match your predictions. You possibly can surely ensure improved profits if your purchase and sale price are usually in tune
with all your calculations.
The hm revenue and customs department or hmrc vat department handles duties on imported goods and services 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 then you may 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 regional market. You’ll now ought to file a vat return in the designated period and pay vat in line with the current vat rate based upon your sales.
However, before you start 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 need to pay the appropriate duties on those goods. In the event you want to import tobacco or alcohol products then you’ll need to pay excise duties on the very same. It is thus very important to be sure of the appropriate classification of your goods so that you find yourself making payment on the exact level of duties specified on it instead of paying more and boosting your costs or paying less and getting into trouble later on.
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 merchandise might attract the standard vat rate of 17.5% or a lower rate of 5% or even be vat exempt based on its classification. This rate will definitely 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 or even selling them locally.
Since it might be very difficult that you keep updating your understanding on changes taking place in customs and vat rates, you should appoint a good customs and vat agent to manage your import and sales duties. Your agent would look after all paperwork related to customs duties, check on whether your products are classified correctly, calculate all vat figures and also file your vat returns in time. Your agent would likewise be able to assist you in vat registration and offer other vat services in case your business recently been established.
If you plan to import goods to the UK or in any other 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 to your country you should certainly be sure you pay proper customs vat on imported goods in order to retain complete control over your costs.