If you intend to start a business in britain 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 possibly can surely ensure improved profits if 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 into the UK, and in addition handles vat returns filed by vat registered traders in the country. Once your taxable sales cross 70,000 pounds in 12 months you might have to get vat registration. This in turn will allow you to obtain a vat number and generate a vat invoice for each sale made in the local market. You’ll now need 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 begin selling your goods or services, you might need 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 need to pay the appropriate duties on those goods. In case you plan to import tobacco or alcohol products then you will need to pay excise duties on the same. It really is thus very important to be sure of the appropriate classification of your goods so that you end up paying the exact amount of duties specified on it instead of paying more and boosting your costs or paying less and having 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 lower 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 or even selling them locally.
Simply because it may be quite challenging that you keep updating your knowledge on changes taking place in customs and vat rates, you should appoint a capable customs and vat agent to manage all your import and sales duties. Your agent would take care of all paperwork in connection with customs duties, check on whether your products 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 offer other vat services if your business recently been established.
If you are planning to import goods to the UK or in any other EU country a detailed knowledge on all vat rules, customs and excise duties, and procedures on vat returns is critical 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 ought to certainly be sure you pay proper customs vat on imported goods in order to retain complete control of your costs.