If you plan to start a business in britain 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 satisfy your predictions. You 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 also handles vat returns filed by vat registered traders in the country. Once your taxable sales cross 70,000 pounds in vatcontrol.com 12 months you might 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 local market. You’ll now ought to file a vat return in the designated period and pay vat based on the current vat rate based upon your sales.
However, before you start selling your services or goods, you may want to import them into the UK. Your goods will in all probability fall under on the list of 14,000 hm customs vat classifications and you will need to pay the appropriate 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 is thus very important to be sure of the appropriate 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 having 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 products might attract the standard vat rate of 17.5% or perhaps a lower rate of 5% or maybe be vat exempt depending on its classification. This rate will certainly 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.
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 all your import and sales duties. Your agent would take care of all paperwork in connection with customs duties, evaluate whether your products are classified correctly, calculate all vat figures plus file your vat returns in time. Your agent would likewise be able to assist you in vat registration and provide other vat services if your business has just been established.
If you plan 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 vital for healthy business growth. One mistake could result in earning the wrath of your customs and excise vat department and put a spanner on future vat refunds. While importing goods into your country you should certainly make sure you pay proper customs vat on imported goods in order to retain complete control over your costs.