If you plan to start a small business in the UK and wish to import goods into the country then you must ensure you pay proper customs vat on imported goods so that your costs match your predictions. You possibly can surely ensure improved profit margins when 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 goods and services into the UK, and in addition handles vat returns filed by vat registered traders in the country. As soon as your taxable sales cross 70,000 pounds in 12 months then you may have to get vat registration vatnumbersearch.com. This in turn allows you to obtain a vat number and generate a vat invoice for every sale made in the regional market. You will now need to file a vat return in the designated period and pay vat based on the current vat rate based upon the sales.
However, before you begin selling your services or goods, you might need to import them to 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 have to pay excise duties on the very same. Its thus very important to be sure of the appropriate classification of your goods so that 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 getting into trouble at a later date.
After you have paid all of 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 merchandise might attract the conventional vat rate of 17.5% or a lower rate of 5% or even be vat exempt depending on its classification. This rate will definitely 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 as well as selling them locally.
Since it might be very difficult that you keep updating your knowledge on changes happening in customs and vat rates, you should appoint a capable customs and vat agent to manage your import and sales duties more info. Your agent would take care of all paperwork related to customs duties, evaluate whether your goods are classified correctly, calculate all vat figures plus file your vat returns on time. Your agent would also be able to help you in vat registration and offer other vat services if your business recently been established.
If you are planning to import goods to the UK or maybe 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 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 to your country you should certainly be sure you pay proper customs vat on imported goods so as to retain complete control of your costs.
