If you plan to start out a small business in the UK and want to import goods into the country then you must ensure you pay proper customs vat on imported goods so that your costs match your predictions. You can surely ensure improved profits when your purchase and sale price are in tune with 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. As soon as your taxable sales cross 70,000 pounds in Twelve 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 each sale made in the local market. You will now ought to file a vat return at the designated period and pay vat based on the current vat rate based on 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 under on the list of 14,000 hm customs vat classifications and you will http://vatcheck.com have to pay the suitable duties on those goods. In the event you plan to import tobacco or alcohol products then you will need to pay excise duties on the very same. It really is thus very important to check on the appropriate classification of your goods so that you end up paying the exact amount of duties specified on it rather than pay more and increasing your costs or paying less and getting into trouble at a later date.
After you have paid all 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 merchandise might attract the conventional vat rate of 17.5% or a lower rate of 5% or even be vat exempt based on its classification. This rate will certainly 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.
Since it may be quite challenging for you to keep updating your knowledge on changes taking place in customs and vat rates, make sure you appoint a capable customs and vat agent to handle your import and sales duties. Your agent would look after all paperwork related to 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 likewise 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 to the UK or 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 you could end up 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 in order to retain complete control of your costs.