If you plan to start out a business in britain and wish to import goods into the country then you certainly must ensure you pay proper customs vat on imported goods so your costs match your predictions. You can surely ensure improved profit margins when your purchase and sale price are 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. Once your taxable sales cross 70,000 pounds in 12 months then you may have to get vat registration. Thus will allow you to obtain a vat number and generate a vat invoice for each sale made in the local market. You’ll now need to file a vat return in the designated period and pay vat in line with the current vat rate based upon the sales.
However, before you start selling your goods or services, you may want to import them into the UK. Your goods will most probably fall under one of the 14,000 hm customs vat classifications and you will have 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 vatcontrol.com/vat excise duties on the very same. It is thus very important to be sure of the appropriate classification of your goods so that you end up paying the exact level of duties specified on it instead of paying more and boosting your costs or paying less and having into trouble at a later date.
After 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 products might attract the standard vat rate of 17.5% or perhaps a reduced rate of 5% or maybe be vat exempt based on its classification. This rate will definitely vary in other EU countries and therefore you should have up-to-date knowledge on uk vat and eu vat rates while importing or exporting your goods as well as selling them locally.
Since it might be quite challenging for you to keep updating your understanding on changes taking place in customs and vat rates, you should appoint a good customs and vat agent to manage your import and sales duties. Your agent would look after all paperwork in connection with customs duties, check on whether your products 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 in case your business has just been established.
If you plan to import goods into the UK or maybe in any other 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 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 make sure you pay proper customs vat on imported goods in order to retain complete control of your costs.