If you plan to start out a business in britain and wish to import goods into the country then you certainly should make sure you make payment for proper customs vat on imported goods so that your costs satisfy your predictions. You possibly 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 goods and services into 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 Twelve months then you may need 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 your sales.
However, before you begin selling your services or goods, you may want to import them into the UK. Your goods will in all probability fall into one of the 14,000 hm customs vat classifications and you’ll have to pay the suitable duties on those goods. In case you want to import tobacco or alcohol products then you’ll have to pay http://vatcontrol.com/vat excise duties on the very same. It is thus very 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 increasing your costs or paying less and getting into trouble later on.
Once you have paid all the relevant import vat, or customs, or excise duties then you will also need to charge the appropriate 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 even 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.
Simply because it might be very difficult for you to keep updating your understanding on changes happening 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, 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 if your business recently been established.
If you plan to import goods into the UK or maybe in another EU country a detailed knowledge on all vat rules, customs and excise duties, and operations 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 to your country you ought to certainly make sure you pay proper customs vat on imported goods in order to retain complete control over your costs.