If you intend to start a small business in the UK and wish to import goods into the country then you must ensure you make payment for proper customs vat on imported goods so your costs satisfy your predictions. You can surely ensure improved profits if 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 goods and services in 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 have to get vat registration. Thus allows you to get a vat number and generate a vat invoice for every sale made in the local 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 on the sales.
However, before you start selling your services or goods, you may want 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’ll need to pay the suitable duties on those goods. In case you want to import tobacco or alcohol products then you’ll have to pay http://vatcontrol.com/vat excise duties on the very same. Its thus extremely important to be sure of the appropriate classification of your goods so you find yourself making payment on the exact level of duties specified on it rather than pay more and increasing your costs or paying less and having into trouble at a later date.
After you have paid all of the relevant import vat, or customs, or excise duties then you’ll also have 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 based on its classification. This rate will definitely 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 as well as selling them locally.
Since it might be very difficult that you keep updating your knowledge on changes happening in customs and vat rates, you should appoint a good customs and vat agent to handle your import and sales duties. Your agent would take care of all paperwork in connection with customs duties, evaluate whether your goods are classified correctly, calculate all vat figures plus file your vat returns in time. Your agent would likewise be able to assist you in vat registration and offer other vat services if your business has just been established.
If you are planning to import goods into the UK or in another EU country then 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 the customs and excise vat department and put a spanner on future vat refunds. While importing goods to your country you should certainly make sure you pay proper customs vat on imported goods so as to retain complete control of your costs.