If you plan to start a small business in the UK and want to import goods to 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 in tune with all your calculations.
The hm revenue and customs department or hmrc vat department handles duties on imported goods and services in 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 12 months then you may need to get vat registration. Thus allows 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 in line with the current vat rate based on the sales.
However, before you begin selling your goods or services, you may want to import them into the UK. Your goods will in all probability fall into on the list of 14,000 hm customs vat classifications and you will need to pay the suitable duties on those goods. In the event you want to import tobacco or alcohol products then you will need to pay excise duties on the very same. Its thus very important to be sure of the correct classification of your goods so you end up paying the exact level of duties specified on it instead of paying more and boosting your costs or paying less and having into trouble at a later date.
Once you have paid all the relevant import vat, or customs, or excise duties then you will also need to charge the appropriate vat rates while selling those goods locally. Your merchandise might attract the standard vat rate of 17.5% or a reduced rate of 5% or even be vat exempt depending on its classification. This rate will certainly 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.
Simply because it might be very difficult for you to keep updating your understanding on changes happening in customs and vat rates, you should appoint a good customs and vat agent to manage all your import and sales duties. Your agent would take care of all paperwork related to customs duties, check on whether your products 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 offer other vat services in case your business recently been established.
If you are planning to import goods to the UK or maybe in another 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 you could end up 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 ought to certainly be sure you pay proper customs vat on imported goods so as to retain complete control over your costs.