If you intend to start a small business in the UK and wish to import goods into the country then you must ensure you pay proper customs vat on imported goods so 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 services and goods into the UK, and also 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 regional market. You will now need to file a vat return in 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 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 will have to pay the suitable duties on those goods. In the event you plan to import tobacco or alcohol products then you’ll have to pay excise duties on the same. Its thus extremely important to be sure of the correct 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 will also have to charge the right vat rates while selling those goods locally. Your products 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 certainly vary in other EU countries and therefore 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 very difficult for you to keep updating your knowledge on changes taking place in customs and vat rates, make sure you appoint a good customs and vat agent to handle all your import and sales duties. Your agent would look after all paperwork in connection with customs duties, evaluate 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 provide other vat services if your business has just been established.
If you are planning to import goods to the UK or maybe in any other EU country then a detailed knowledge on all vat rules, customs and excise duties, and procedures 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 be sure you pay proper customs vat on imported goods in order to retain complete control of your costs.