If you intend to start a business in britain and want to import goods into the country then you certainly must ensure you make payment for proper customs vat on imported goods so that your costs satisfy your predictions. You possibly can surely ensure improved profits if your purchase and sale price are in tune with 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 12 months you might need to get vat registration. Thus allows you to obtain a vat number and generate a vat invoice for every 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 start selling your services or goods, you might need 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 will have to pay the appropriate duties on those goods. In case you want to import tobacco or alcohol products then you will have to pay excise duties on the same. Its thus extremely important to be sure of the appropriate classification of your goods so that you find yourself paying the exact level of duties specified on it rather than pay more and increasing your costs or paying less and getting into trouble later on.
After you have paid all of the relevant import vat, or customs, or excise duties then you will also have to charge the right vat rates while selling those goods locally. Your merchandise might attract the conventional vat rate of 17.5% or a lower rate of 5% or maybe be vat exempt based on its classification. This rate will certainly vary in other EU countries and therefore 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 knowledge on changes happening in customs and vat rates, you should appoint a capable customs and vat agent to manage all your import and sales duties. Your agent would take care of all paperwork in connection with customs duties, evaluate whether your goods are classified correctly, calculate all vat figures and also file your vat returns on 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 into the UK or maybe in any other 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 you could end up 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 be sure you pay proper customs vat on imported goods in order to retain complete control over your costs.