If you intend to start a business in the UK and wish to import goods into the country then you certainly should make sure you pay proper customs vat on imported goods so your costs satisfy your predictions. You can surely ensure improved profit margins 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 country. Once your taxable sales cross 70,000 pounds in 12 months then you may have to get vat registration. This in turn allows you to get a vat number and generate a vat invoice for each sale made in the local market. You’ll now need to file a vat return in the designated period and pay vat in line with the current vat rate based upon your 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 appropriate duties on those goods. In case you want to import tobacco or alcohol products then you’ll need to pay https://vatcontrol.com/vat excise duties on the very same. It is thus very important to be sure of the correct classification of your goods so you find yourself making payment on the exact amount of duties specified on it rather than pay more and increasing 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 will also need 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 reduced rate of 5% or maybe be vat exempt based on its classification. This rate will definitely 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 that you keep updating your knowledge on changes taking place in customs and vat rates, make sure you appoint a capable customs and vat agent to handle all your import and sales duties. Your agent would look after 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 provide other vat services if 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 operations on vat returns is critical 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 to your country you ought to certainly make sure you pay proper customs vat on imported goods in order to retain complete control of your costs.