Ensure you pay proper customs vat on imported goods

If you intend to start out a business in the UK and want to import goods to the country then you should make sure you pay proper customs vat on imported goods so your costs satisfy your predictions. You can surely ensure improved profit margins when your purchase and sale price are usually in tune with your calculations.

The hm revenue and customs department or hmrc vat department handles duties on imported services and goods 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 then you may have to get vat registration. This in turn will allow you to get a vat number and generate a vat invoice for each sale made in the regional market. You’ll now need 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 begin selling your goods or services, you may want to import them into the UK. Your goods will most probably fall under one of the 14,000 hm customs vat classifications and you’ll have to pay the appropriate duties on those goods. In the event you want to import tobacco or alcohol products then you will have to pay excise duties on the same. It really is thus very important to be sure of the appropriate classification of your goods so 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.

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 merchandise might attract the standard vat rate of 17.5% or perhaps a reduced 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 may 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 in time. Your agent would likewise be able to help 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 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 could result in 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 ought to certainly be sure you pay proper customs vat on imported goods in order to retain complete control of your costs.