If you plan to start a small business in britain and wish to import goods into the country then you should make sure you pay proper customs vat on imported goods so that your costs match your predictions. You can surely ensure improved profits 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 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. Thus allows you to get a vat number and generate a vat invoice for each sale made in the regional market. You will now need to file a vat return at the designated period and pay vat in line with the current vat rate based on the sales.
However, before you start selling your goods or services, you may want to import them to the UK. Your goods will most probably fall into on the list of 14,000 hm customs vat classifications and you’ll have to pay the appropriate duties on those goods. In the event you plan to import tobacco or alcohol products then you’ll need to pay vatcontrol.com/vat excise duties on the same. It is thus extremely important to check on the correct classification of your goods so you end up making payment on the exact amount of duties specified on it instead of paying 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 have to charge the appropriate vat rates while selling those goods locally. Your products might attract the standard vat rate of 17.5% or perhaps a lower rate of 5% or even be vat exempt depending on its classification. This rate will definitely vary in other EU countries and thus 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 quite challenging that you 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 in connection with customs duties, check on whether your products are classified correctly, calculate all vat figures and also file your vat returns on time. Your agent would likewise be able to help you in vat registration and provide other vat services in case your business recently been established.
If you are planning 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 vital 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 to your country you ought to certainly be sure you pay proper customs vat on imported goods in order to retain complete control over your costs.