If you plan to start 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 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 into the UK, and in addition handles vat returns filed by vat registered traders in the country. As soon as your taxable sales cross 70,000 pounds in 12 months you might have to get vat registration. This in turn allows 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 in the designated period and pay vat in line with the current vat rate based upon the sales.
However, before you begin selling your goods or services, you might need to import them to the UK. Your goods will most probably fall under on the list of 14,000 hm customs vat classifications and you’ll need to pay the appropriate duties on those goods. In the event you want to import tobacco or alcohol products then you will have to pay excise duties on the same. It really is thus very important to be sure of the correct classification of your goods so you find yourself making payment on the exact amount of duties specified on it rather than pay more and increasing your costs or paying less and getting into trouble later on.
After you have paid all the relevant import vat, or customs, or excise duties then you will also have to charge the appropriate vat rates while selling those goods locally. Your merchandise might attract the conventional vat rate of 17.5% or a reduced rate of 5% or maybe be vat exempt depending 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 very difficult that you keep updating your understanding on changes happening in customs and vat rates, you should appoint a good customs and vat agent to handle all your import and sales duties. Your agent would look after 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 likewise be able to assist you in vat registration and offer other vat services in case your business has just been established.
If you are planning to import goods to the UK or maybe in any other EU country then 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 should certainly be sure you pay proper customs vat on imported goods in order to retain complete control over your costs.