If you plan to start a business in britain and wish to import goods into the country then you should make sure you pay proper customs vat on imported goods so 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 goods and services into the UK, and in addition handles vat returns filed by vat registered traders in the country. As soon as your taxable sales cross 70,000 pounds in vatcontrol.com 12 months you might have to get vat registration. This in turn 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 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 in all probability fall under one of the 14,000 hm customs vat classifications and you will have to pay the appropriate duties on those goods. In case you want to import tobacco or alcohol products then you will need to pay excise duties on the very same. It really is thus very important to be sure of the appropriate classification of your goods so 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 getting into trouble at a later date.
After you have paid all the relevant import vat, or customs, or excise duties then you’ll also have to charge the appropriate vat rates while selling those goods locally. Your products 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 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 as well as selling them locally.
Simply because it might be quite challenging that you keep updating your understanding on changes taking place 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, check on whether your goods 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 provide other vat services if your business has just been established.
If you plan to import goods to the UK or maybe in another EU country then a detailed knowledge on all vat rules, customs and excise duties, and operations on vat returns is vital 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 to your country you should certainly make sure you pay proper customs vat on imported goods in order to retain complete control of your costs.