If you plan to start out a business in britain and wish to import goods to the country then you certainly must ensure you pay proper customs vat on imported goods so your costs satisfy your predictions. You possibly can surely ensure improved profit margins when your purchase and sale price are usually in tune with 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. Once your taxable sales cross 70,000 pounds in 12 months you might have to get vat registration. This in turn allows 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 in the designated period and pay vat based on the current vat rate based on the sales.
However, before you begin selling your services or goods, you might need to import them into the UK. Your goods will in all probability fall into on the list of 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 vatcontrol.com/vat excise duties on the very same. Its thus extremely important to be sure of the appropriate classification of your goods so that you find yourself making payment on the exact amount of duties specified on it rather than pay more and boosting your costs or paying less and having into trouble later on.
Once you have paid all 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 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 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 for you to keep updating your knowledge on changes happening in customs and vat rates, you should appoint a capable customs and vat agent to handle 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 on time. Your agent would also 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 into the UK or in another EU country then a detailed knowledge on all vat rules, customs and excise duties, and operations on vat returns is critical for healthy business growth. One mistake could result in 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 ought to certainly be sure you pay proper customs vat on imported goods so as to retain complete control of your costs.