If you plan to start out a business in the UK and wish to import goods to the country then you must ensure you make payment for proper customs vat on imported goods so that 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 in the UK, and in addition 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 will allow you to obtain a vat number and generate a vat invoice for each sale made in the local market. You will now ought to file a vat return at the designated period and pay vat based on 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 under one of the 14,000 hm customs vat classifications and you will have to pay the suitable duties on those goods. In the event you plan to import tobacco or alcohol products then you’ll have to pay vatcontrol.com/vat excise duties on the same. It really is thus extremely important to check on the appropriate classification of your goods so you end up paying the exact level of duties specified on it instead of paying 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’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 depending on its classification. This rate will certainly vary in other EU countries and therefore 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 might be quite challenging that you keep updating your understanding on changes taking place in customs and vat rates, you should appoint a good customs and vat agent to handle all your import and sales duties. Your agent would take care of all paperwork related to customs duties, check on whether your goods are classified correctly, calculate all vat figures plus file your vat returns in time. Your agent would also be able to assist you in vat registration and offer other vat services in case your business has just been established.
If you plan to import goods into 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 you could end up 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 in order to retain complete control of your costs.