If you intend to start a small business in the UK and want to import goods to the country then you should make sure you make payment for proper customs vat on imported goods so your costs satisfy your predictions. You possibly can surely ensure improved profit margins 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 in the UK, and in addition handles vat returns filed by vat registered traders in the united kingdom. Once your taxable sales cross 70,000 pounds in vatcontrol Twelve months then you may have to get vat registration. This in turn allows you to obtain a vat number and generate a vat invoice for each sale made in the regional market. You will now ought to file a vat return at the designated period and pay vat based on the current vat rate based upon your sales.
However, before you start selling your goods or services, you might need to import them into the UK. Your goods will most probably fall into on the list of 14,000 hm customs vat classifications and you’ll need to pay the appropriate duties on those goods. In case you want to import tobacco or alcohol products then you will have to pay excise duties on the very same. Its thus extremely important to be sure of the correct classification of your goods so that 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.
Once you have paid all the relevant import vat, or customs, or excise duties then you’ll also need to charge the appropriate vat rates while selling those goods locally. Your products might attract the standard vat rate of 17.5% or a lower rate of 5% or maybe be vat exempt depending 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 may be quite challenging for you to keep updating your understanding on changes taking place in customs and vat rates, make sure you 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 goods are classified correctly, calculate all vat figures and also file your vat returns on time. Your agent would also be able to help you in vat registration and offer other vat services in case your business recently been established.
If you are planning to import goods into the UK or maybe in any other EU country a detailed knowledge on all vat rules, customs and excise duties, and procedures on vat returns is vital 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 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.