If you intend to start a small business in the UK and wish to import goods to the country then you certainly should make sure you make payment for proper customs vat on imported goods so your costs match your predictions. You possibly can surely ensure improved profit margins if your purchase and sale price are in tune with all your calculations.
The hm revenue and customs department or hmrc vat department handles duties on imported services and goods into the UK, and also handles vat returns filed by vat registered traders in the country. As soon as your taxable sales cross 70,000 pounds in https://vatcontrol.com Twelve months then you may have 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 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 most probably fall under on the list of 14,000 hm customs vat classifications and you’ll need to pay the appropriate duties on those goods. In the event you plan to import tobacco or alcohol products then you’ll need to pay excise duties on the very same. Its thus extremely important to be sure of 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 of 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 products might attract the conventional vat rate of 17.5% or perhaps a lower rate of 5% or even be vat exempt based on its classification. This rate will definitely vary in other EU countries and therefore 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.
Since it might be quite challenging for you to keep updating your understanding on changes taking place in customs and vat rates, make sure you appoint a good customs and vat agent to handle your import and sales duties. Your agent would take care of all paperwork related to customs duties, evaluate whether your goods are classified correctly, calculate all vat figures and also file your vat returns in time. Your agent would also be able to help you in vat registration and provide other vat services in case your business has just been established.
If you are planning to import goods to 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 into your country you ought to certainly be sure you pay proper customs vat on imported goods so as to retain complete control over your costs.