Ensure you pay proper customs vat on imported goods

If you intend to start out a business in britain and wish to import goods into the country then you certainly 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 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 services and goods 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 you might have 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 need to file a vat return in the designated period and pay vat based on the current vat rate based on 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’ll have to pay the appropriate duties on those goods. In case you plan to import tobacco or alcohol products then you will have to pay excise duties on the very same. It is thus extremely important to be sure of the appropriate classification of your goods so that you end up making payment on the exact amount of duties specified on it rather than pay more and boosting 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 will also need to charge the appropriate vat rates while selling those goods locally. Your products might attract the standard vat rate of 17.5% or perhaps a lower rate of 5% or maybe be vat exempt based 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 or even selling them locally.

Simply because it might be very difficult that you keep updating your knowledge on changes taking place in customs and vat rates, you should appoint a capable customs and vat agent to handle all your import and sales duties. Your agent would take care of all paperwork in connection with customs duties, check on 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 has just been established.

If you plan to import goods into the UK or in another EU country then 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 over your costs.