Make sure 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 that your costs satisfy your predictions. You can surely ensure improved profits when your purchase and sale price are usually in tune with all your calculations.

The hm revenue and customs department or hmrc vat department handles duties on imported goods and services in the UK, and also handles vat returns filed by vat registered traders in the united kingdom. As soon as your taxable sales cross 70,000 pounds in Twelve months then you may need to get vat registration. This in turn will allow you to obtain a vat number and generate a vat invoice for every sale made in the local market. You’ll now need to file a vat return at the designated period and pay vat based on the current vat rate based upon your sales.

However, before you begin 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 will have to pay the appropriate duties on those goods. In the event you want to import tobacco or alcohol products then you will need to pay excise duties on the very same. It is thus extremely important to check on 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 increasing your costs or paying less and having into trouble later on.

After you have paid all the relevant import vat, or customs, or excise duties then you’ll also have to charge the appropriate vat rates while selling those goods locally. Your merchandise 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 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 or even selling them locally.

Since it might be very difficult that you keep updating your understanding on changes taking place in customs and vat rates, you should appoint a capable customs and vat agent to manage your import and sales duties. Your agent would take care of all paperwork related to customs duties, evaluate whether your products are classified correctly, calculate all vat figures and also file your vat returns on time. Your agent would likewise be able to help you in vat registration and offer other vat services if your business has just been established.

If you plan to import goods to the UK or in another 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 so as to retain complete control of your costs.