If you intend to start out a small business in the UK and want to import goods to the country then you certainly must ensure you make payment for 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 usually in tune with all 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 vatcontrol.com Twelve months then you may have to get vat registration. This in turn will allow you to obtain a vat number and generate a vat invoice for each sale made in the regional market. You will now ought to file a vat return at the designated period and pay vat based on the current vat rate based upon the sales.
However, before you start selling your services or goods, you might need to import them to 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 the event you plan to import tobacco or alcohol products then you’ll have to pay excise duties on the very same. It is thus extremely important to check on the correct classification of your goods so you end up paying the exact amount of duties specified on it instead of paying more and increasing your costs or paying less and having into trouble at a later date.
Once 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 a lower rate of 5% or even be vat exempt depending on its classification. This rate will definitely vary in other EU countries and therefore you should 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 very difficult 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 your import and sales duties. Your agent would look after all paperwork in connection with customs duties, check on whether your goods are classified correctly, calculate all vat figures plus file your vat returns in time. Your agent would likewise be able to help you in vat registration and provide other vat services if 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 operations on vat returns is critical for healthy business growth. One mistake could result in earning the wrath of the 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 so as to retain complete control over your costs.