If you plan to start out a business in britain and want to import goods into the country then you certainly must ensure you pay proper customs vat on imported goods so your costs satisfy your predictions. You can surely ensure improved profit margins when 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 also handles vat returns filed by vat registered traders in the country. As soon as your taxable sales cross 70,000 pounds in 12 months then you may need to get vat registration. This in turn allows you to get a vat number and generate a vat invoice for each sale made in the regional market. You’ll now ought to file a vat return at the designated period and pay vat in line with the current vat rate based on your sales.
However, before you begin selling your services or goods, you may want to import them to the UK. Your goods will most probably fall under 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 need to pay https://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 find yourself making payment on the exact amount of duties specified on it rather than pay more and boosting your costs or paying less and getting 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 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 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.
Since it may be very difficult for you to keep updating your understanding on changes taking place in customs and vat rates, make sure you appoint a capable customs and vat agent to handle all your import and sales duties. Your agent would look after 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 provide other vat services in case your business has just been established.
If you plan 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 operations 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 should certainly make sure you pay proper customs vat on imported goods so as to retain complete control of your costs.