If you intend to start a small business in britain and want to import goods into the country then you must ensure you pay proper customs vat on imported goods so that your costs satisfy your predictions. You 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 services and goods 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 Twelve months then you may have to get vat registration. This in turn allows you to obtain a vat number and generate a vat invoice for each sale made in the regional market. You’ll now need to file a vat return at the designated period and pay vat in line with the current vat rate based upon your sales.
However, before you start selling your goods or services, you may want to import them into the UK. Your goods will in all probability fall under one of the 14,000 hm customs vat classifications and you will have to pay the suitable duties on those goods. In case you want to import tobacco or alcohol products then you will need to pay excise duties on the same. It really is thus extremely important to check on the appropriate classification of your goods so that you end up making payment on the exact amount of duties specified on it instead of paying more and increasing your costs or paying less and getting into trouble at a later date.
After you have paid all 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 merchandise might attract the standard vat rate of 17.5% or a reduced rate of 5% or maybe be vat exempt depending 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 very difficult for you to keep updating your knowledge on changes happening in customs and vat rates, make sure you appoint a good 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 products are classified correctly, calculate all vat figures and also file your vat returns in time. Your agent would likewise be able to help you in vat registration and offer other vat services if 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 ought to certainly make sure you pay proper customs vat on imported goods so as to retain complete control over your costs.