If you plan to start a small business in the UK and wish to import goods to the country then you certainly must ensure you pay proper customs vat on imported goods so that your costs satisfy your predictions. You possibly can surely ensure improved profits if your purchase and sale price are usually 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 in addition handles vat returns filed by vat registered traders in the country. 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 get a vat number and generate a vat invoice for every sale made in the regional market. You will now ought to file a vat return in the designated period and pay vat based on the current vat rate based upon the sales.
However, before you begin selling your goods or services, you may want to import them to the UK. Your goods will in all probability fall under on the list of 14,000 hm customs vat classifications and you’ll vatcheck need 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 same. It really 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 boosting 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 will also need to charge the appropriate vat rates while selling those goods locally. Your products 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 as well as selling them locally.
Since it might be very difficult for you to keep updating your knowledge on changes taking place in customs and vat rates, you should appoint a capable customs and vat agent to handle your import and sales duties. Your agent would look after 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 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 in any other EU country then a detailed knowledge on all vat rules, customs and excise duties, and procedures on vat returns is critical 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 should certainly be sure you pay proper customs vat on imported goods so as to retain complete control over your costs.