If you plan to start out a small business in britain and wish to import goods to the country then you must ensure you make payment for proper customs vat on imported goods so your costs satisfy your predictions. You can surely ensure improved profits 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 into the UK, and also handles vat returns filed by vat registered traders in the country. As soon as your taxable sales cross 70,000 pounds in Twelve months you might have to get vat registration. This in turn will allow you to get a vat number and generate a vat invoice for each sale made in the local 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 upon the sales.
However, before you start selling your services or goods, you may want to import them to the UK. Your goods will most probably fall under one of the 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’ll have to pay excise duties on the same. Its thus extremely important to check on the correct classification of your goods so that you find yourself making payment on the exact level of duties specified on it rather than pay 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 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 perhaps a lower rate of 5% or maybe 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 as well as selling them locally.
Since it may be quite challenging that you keep updating your knowledge on changes taking place in customs and vat rates, make sure you appoint a good customs and vat agent to handle your import and sales duties. Your agent would look after all paperwork in connection with customs duties, evaluate 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 assist you in vat registration and provide 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 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 of your costs.