If you plan to start a small business in the UK and wish to import goods to the country then you certainly should make sure you pay proper customs vat on imported goods so that your costs satisfy your predictions. You possibly can surely ensure improved profit margins when 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 12 months then you may need to get vat registration. Thus allows you to get a vat number and generate a vat invoice for every sale made in the regional market. You’ll 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 begin selling your services or goods, 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’ll have to pay the suitable duties on those goods. In the event you plan to import tobacco or alcohol products then you will have to pay excise duties on the very same. It is thus extremely important to check on the appropriate classification of your goods so that you end up paying the exact amount of duties specified on it instead of paying more and boosting your costs or paying less and having into trouble later on.
After you have paid all the relevant import vat, or customs, or excise duties then you will also have to charge the right vat rates while selling those goods locally. Your merchandise might attract the conventional vat rate of 17.5% or perhaps a lower rate of 5% or even be vat exempt depending on its classification. This rate will certainly vary in other EU countries and thus 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.
Simply because it may be very difficult for you to keep updating your knowledge on changes happening 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 in connection with customs duties, check on whether your goods are classified correctly, calculate all vat figures plus 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 into the UK or in any other EU country 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 to your country you should certainly be sure you pay proper customs vat on imported goods in order to retain complete control of your costs.