If you intend to start out a business in the UK and wish to import goods to the country then you should make sure you make payment for proper customs vat on imported goods so that your costs satisfy your predictions. You 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 services and goods 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 then you may need 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 need to file a vat return at the designated period and pay vat based on the current vat rate based on your sales.
However, before you begin selling your services or goods, you may want to import them to the UK. Your goods will in all probability fall under on the list of 14,000 hm customs vat classifications and you will have to pay the suitable duties on those goods. In case you plan to import tobacco or alcohol products then you will have to pay excise duties on the same. It really is thus extremely important to check on the appropriate classification of your goods so you find yourself paying the exact amount of duties specified on it instead of paying more and increasing your costs or paying less and having into trouble later on.
After you have paid all the relevant import vat, or customs, or excise duties then you’ll 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 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 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 good customs and vat agent to manage 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 likewise be able to help you in vat registration and provide other vat services in case your business has just 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 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 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.