If you plan to start out a small business in britain and wish to import goods into 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 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. As soon as your taxable sales cross 70,000 pounds in Twelve months then you may have to get vat registration. Thus will allow you to obtain a vat number and generate a vat invoice for each sale made in the local market. You’ll now need to file a vat return at the designated period and pay vat based on the current vat rate based on your sales.
However, before you begin selling your goods or services, you may want to import them into the UK. Your goods will most probably fall under on the list of 14,000 hm customs vat classifications and you will have to pay the suitable 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 very same. It really is thus extremely important to check on the correct classification of your goods so 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 getting into trouble later on.
After you have paid all of the relevant import vat, or customs, or excise duties then you’ll 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 lower rate of 5% or maybe be vat exempt based on its classification. This rate will definitely 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.
Simply because it may be quite challenging for you to keep updating your knowledge on changes happening in customs and vat rates, make sure you appoint a capable customs and vat agent to manage your import and sales duties. Your agent would take care of 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 also be able to assist 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 maybe in any other EU country then a detailed knowledge on all vat rules, customs and excise duties, and operations 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 to your country you should certainly be sure you pay proper customs vat on imported goods in order to retain complete control over your costs.