If you plan to start out a small business in the UK and wish to import goods into the country then you 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 when 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 in 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 12 months you might 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 local market. You’ll 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 might need to import them into the UK. Your goods will in all probability fall under on the list of 14,000 hm customs vat classifications and you’ll www.vatcheck.com 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. It really is thus very important to check on the correct classification of your goods so you end up paying the exact level of duties specified on it rather than pay more and boosting 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 have to charge the right vat rates while selling those goods locally. Your products might attract the conventional vat rate of 17.5% or a lower rate of 5% or maybe be vat exempt depending 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.
Since it may be quite challenging that you keep updating your knowledge on changes taking place in customs and vat rates, you should appoint a capable customs and vat agent to manage all your import and sales duties. Your agent would take care of all paperwork in connection with 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 also be able to help you in vat registration and offer other vat services if your business has just 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 critical 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 into your country you should certainly be sure you pay proper customs vat on imported goods so as to retain complete control of your costs.