Make sure you pay proper customs vat on imported goods

If you intend to start out 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 that your costs match your predictions. You possibly can surely ensure improved profits if 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 united kingdom. Once your taxable sales cross 70,000 pounds in 12 months then you may need to get vat registration. This in turn will allow you to get a vat number and generate a vat invoice for every sale made in the local market. You will now need to file a vat return at the designated period and pay vat in line with the current vat rate based upon your sales.

However, before you start selling your services or goods, you may want 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 will need to pay the appropriate duties on those goods. In case you plan to import tobacco or alcohol products then you’ll have to pay 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 instead of paying more and increasing 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 have to charge the right vat rates while selling those goods locally. Your merchandise might attract the conventional vat rate of 17.5% or a reduced rate of 5% or even be vat exempt depending 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 very difficult 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 manage your import and sales duties. Your agent would take care of all paperwork in connection with customs duties, evaluate whether your products 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 provide other vat services if your business has just been established.

If you are planning to import goods to 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 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 in order to retain complete control over your costs.