Ensure you pay proper customs vat on imported goods

If you plan to start a business in britain and want to import goods to the country then you certainly must ensure you make payment for proper customs vat on imported goods so your costs satisfy your predictions. You possibly can surely ensure improved profit margins when 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 in 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 need to get vat registration. Thus will allow you to obtain a vat number and generate a vat invoice for every sale made in the regional market. You’ll now ought to file a vat return at the designated period and pay vat in line with the current vat rate based upon the sales.

However, before you start selling your goods or services, you may want to import them into the UK. Your goods will in all probability fall under one of the 14,000 hm customs vat classifications and you’ll have to pay the suitable duties on those goods. In the event you plan to import tobacco or alcohol products then you will need to pay excise duties on the same. Its thus very important to be sure of the correct classification of your goods so that you find yourself making payment on the exact level of duties specified on it instead of paying more and increasing your costs or paying less and having into trouble at a later date.

Once you have paid all of the relevant import vat, or customs, or excise duties then you’ll also have to charge the right vat rates while selling those goods locally. Your products might attract the standard vat rate of 17.5% or a reduced rate of 5% or maybe be vat exempt based on its classification. This rate will certainly 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 or even selling them locally.

Simply because it might be very difficult that you keep updating your understanding on changes happening in customs and vat rates, make sure you appoint a good customs and vat agent to manage your import and sales duties. Your agent would look after all paperwork in connection with customs duties, check on whether your products are classified correctly, calculate all vat figures plus file your vat returns in time. Your agent would likewise be able to help you in vat registration and offer other vat services in case your business has just been established.

If you are planning to import goods into the UK or in another EU country a detailed knowledge on all vat rules, customs and excise duties, and operations on vat returns is critical for healthy business growth. One mistake you could end up 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 should certainly make sure you pay proper customs vat on imported goods in order to retain complete control over your costs.