If you intend to start a business in the UK and want to import goods into the country then you certainly should make sure you pay 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 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 country. Once your taxable sales cross 70,000 pounds in 12 months you might have to get vat registration. This in turn allows you to get a vat number and generate a vat invoice for every sale made in the local market. You’ll now need 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 start selling your services or goods, you may want 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 will have 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 very same. Its thus extremely important to check on the appropriate classification of your goods so you end up making payment on the exact amount of duties specified on it instead of paying more and boosting your costs or paying less and getting into trouble later on.
Once you have paid all of 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 products might attract the standard 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 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.
Simply because it might be very difficult 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 manage 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 in time. Your agent would also be able to assist you in vat registration and offer other vat services in case your business recently been established.
If you are planning to import goods into 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 critical 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 should certainly make sure you pay proper customs vat on imported goods in order to retain complete control of your costs.