If you plan to start a business in britain and want to import goods to the country then you certainly should make sure you pay proper customs vat on imported goods so your costs match your predictions. You possibly can surely ensure improved profit margins 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 into the UK, and also handles vat returns filed by vat registered traders in the country. Once your taxable sales cross 70,000 pounds in 12 months then you may have to get vat registration. This in turn will allow you to get a vat number and generate a vat invoice for each sale made in the local market. You’ll now ought to file a vat return at the designated period and pay vat based on the current vat rate based upon your sales.
However, before you begin selling your services or goods, you may want to import them to the UK. Your goods will in all probability fall under on the list of 14,000 hm customs vat classifications and you’ll www.vatcheck.com need to pay the appropriate duties on those goods. In the event you want to import tobacco or alcohol products then you will need to pay excise duties on the very same. Its thus extremely important to be sure of the correct classification of your goods so that you end up paying the exact level of duties specified on it rather than pay more and increasing your costs or paying less and having into trouble later on.
Once you have paid all the relevant import vat, or customs, or excise duties then you’ll also have to charge the right vat rates while selling those goods locally. Your merchandise might attract the standard vat rate of 17.5% or perhaps a reduced rate of 5% or even be vat exempt based 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 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 good customs and vat agent to manage all 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 assist you in vat registration and provide other vat services in case your business has just been established.
If you plan to import goods to the UK or in another 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 into your country you should certainly make sure you pay proper customs vat on imported goods in order to retain complete control over your costs.