If you intend to start out a small business in the UK and wish to import goods to the country then you certainly should make sure you pay proper customs vat on imported goods so that 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 into 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 Twelve months you might have to get vat registration. Thus allows you to obtain 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 at the designated period and pay vat based on the current vat rate based on the sales.
However, before you start selling your goods or services, you may want to import them to the UK. Your goods will most probably fall into one of the 14,000 hm customs vat classifications and you will have to pay the appropriate duties on those goods. In case you plan to import tobacco or alcohol products then you’ll have to pay excise duties on the same. It is thus extremely important to be sure of 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 at a later date.
After you have paid all of the relevant import vat, or customs, or excise duties then you will 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 perhaps a reduced rate of 5% or even be vat exempt based on its classification. This rate will definitely 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.
Simply because it might be quite challenging 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 your import and sales duties. Your agent would take care of all paperwork related to customs duties, evaluate whether your goods are classified correctly, calculate all vat figures and also 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 are planning to import goods to the UK or maybe in any other EU country then a detailed knowledge on all vat rules, customs and excise duties, and procedures on vat returns is critical for healthy business growth. One mistake you could end up 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 ought to certainly be sure you pay proper customs vat on imported goods so as to retain complete control over your costs.