If you intend to start a business in the UK and want to import goods into the country then you should make sure you make payment for proper customs vat on imported goods so your costs satisfy your predictions. You possibly can surely ensure improved profits when your purchase and sale price are usually in tune
with 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 12 months you might need to get vat registration. This in turn will allow you to get a vat number and generate a vat invoice for every sale made in the local 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 upon 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 into on the list of 14,000 hm customs vat classifications and you’ll need to pay the appropriate duties on those goods. In the event you plan to import tobacco or alcohol products then you’ll need to pay excise duties on the same. It is thus very important to be sure of the appropriate classification of your goods so 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 later on.
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 merchandise might attract the conventional vat rate of 17.5% or perhaps a reduced rate of 5% or maybe be vat exempt based on its classification. This rate will definitely vary in other EU countries and thus 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, make sure you appoint a capable customs and vat agent to handle your import and sales duties. Your agent would take care of all paperwork related to customs duties, evaluate whether your goods are classified correctly, calculate all vat figures and also file your vat returns in time. Your agent would also be able to help you in vat registration and offer other vat services if your business has just been established.
If you plan to import goods to the UK or in any other 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 ought to certainly be sure you pay proper customs vat on imported goods so as to retain complete control over your costs.