If you plan to start a business in the UK and wish to import goods to the country then you should make sure you pay proper customs vat on imported goods so that your costs satisfy your predictions. You 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 united kingdom. Once your taxable sales cross 70,000 pounds in vat control Twelve months you might have to get vat registration. Thus 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 on your sales.
However, before you begin selling your services or goods, you might need to import them to the UK. Your goods will most probably fall under one of the 14,000 hm customs vat classifications and you will need to pay the appropriate duties on those goods. In the event you plan to import tobacco or alcohol products then you will need to pay excise duties on the same. Its thus extremely important to be sure of the correct classification of your goods so you find yourself paying the exact amount of duties specified on it rather than pay 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 have to charge the appropriate vat rates while selling those goods locally. Your products might attract the conventional vat rate of 17.5% or perhaps a reduced rate of 5% or maybe be vat exempt depending on its classification. This rate will definitely vary in other EU countries and thus 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.
Since it may be very difficult for you to keep updating your knowledge on changes happening in customs and vat rates, make sure you appoint a capable customs and vat agent to handle all your import and sales duties. Your agent would look after all paperwork related to customs duties, check on whether your products 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 provide other vat services in case your business has just been established.
If you plan to import goods into the UK or maybe in any other EU country a detailed knowledge on all vat rules, customs and excise duties, and procedures 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 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.