If you intend to start a business in britain and wish to import goods into the country then you should make sure you make payment for proper customs vat on imported goods so that your costs satisfy your predictions. You can surely ensure improved profits 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 services and goods 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 Twelve months you might have to get vat registration. Thus allows you to obtain 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 upon the sales.
However, before you begin selling your goods or services, you may want to import them to 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 plan to import tobacco or alcohol products then you will have to pay vatcontrol.com/vat excise duties on the same. It is thus extremely important to be sure of the appropriate classification of your goods so you find yourself paying the exact level of duties specified on it instead of paying more and boosting your costs or paying less and getting into trouble at a later date.
After you have paid all of the relevant import vat, or customs, or excise duties then you’ll 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 a reduced rate of 5% or maybe be vat exempt depending on its classification. This rate will certainly 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 or even selling them locally.
Since it might be quite challenging for you to keep updating your understanding on changes happening in customs and vat rates, make sure you appoint a capable customs and vat agent to manage your import and sales duties. Your agent would take care of all paperwork related to customs duties, check on whether your products are classified correctly, calculate all vat figures plus file your vat returns in time. Your agent would also be able to assist you in vat registration and offer other vat services if your business has just been established.
If you are planning to import goods to the UK or maybe in another EU country 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 the customs and excise vat department and put a spanner on future vat refunds. While importing goods to your country you should certainly make sure you pay proper customs vat on imported goods so as to retain complete control of your costs.