If you intend to start out a business in britain and wish to import goods into the country then you certainly must ensure you pay proper customs vat on imported goods so your costs match your predictions. You possibly 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 into the UK, and in addition 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. Thus will allow you to get a vat number and generate a vat invoice for every sale made in the regional market. You will now ought to file a vat return in the designated period and pay vat based on the current vat rate based on the sales.
However, before you begin selling your services or goods, 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 have to pay the suitable 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 correct classification of your goods so you end up paying 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.
After you have paid all the relevant import vat, or customs, or excise duties then you will also need to charge the appropriate vat rates while selling those goods locally. Your merchandise might attract the standard vat rate of 17.5% or a lower rate of 5% or even be vat exempt depending on its classification. This rate will definitely 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 as well as selling them locally.
Since it may be very difficult that you keep updating your knowledge on changes taking place in customs and vat rates, you should appoint a good customs and vat agent to manage all your import and sales duties. Your agent would take care of all paperwork related to customs duties, check on whether your goods are classified correctly, calculate all vat figures plus file your vat returns on time. Your agent would likewise be able to assist you in vat registration and offer other vat services if your business recently 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 procedures on vat returns is vital for healthy business growth. One mistake you could end up earning the wrath of your customs and excise vat department and put a spanner on future vat refunds. While importing goods into your country you ought to certainly make sure you pay proper customs vat on imported goods so as to retain complete control of your costs.