If you intend to start out a business in britain and want to import goods into the country then you certainly should make sure you pay proper customs vat on imported goods so that your costs match your predictions. You possibly can surely ensure improved profit margins when your purchase and sale price are in tune with all your calculations.
The hm revenue and customs department or hmrc vat department handles duties on imported services and goods in the UK, and also handles vat returns filed by vat registered traders in the united kingdom. As soon as your taxable sales cross 70,000 pounds in Twelve months then you may have to get vat registration. This in turn allows you to obtain a vat number and generate a vat invoice for every 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 the sales.
However, before you start selling your goods or services, you might need to import them into the UK. Your goods will most probably fall into one of the 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’ll have to pay https://vatcontrol.com/vat excise duties on the very same. It is thus very important to be sure of the correct classification of your goods so you find yourself paying the exact level of duties specified on it rather than pay more and increasing your costs or paying less and getting into trouble at a later date.
After you have paid all of the relevant import vat, or customs, or excise duties then you will also need to charge the right vat rates while selling those goods locally. Your products might attract the standard vat rate of 17.5% or a reduced rate of 5% or even be vat exempt based on its classification. This rate will certainly 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 might be quite challenging for you to keep updating your understanding on changes happening in customs and vat rates, you should appoint a capable customs and vat agent to manage all 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 and also file your vat returns in time. Your agent would also be able to help you in vat registration and offer other vat services if your business recently been established.
If you plan to import goods into the UK or in any other EU country a detailed knowledge on all vat rules, customs and excise duties, and procedures on vat returns is vital 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 ought to certainly be sure you pay proper customs vat on imported goods in order to retain complete control of your costs.