Make sure you pay proper customs vat on imported goods

If you intend to start out a business in the UK and wish to import goods into the country then you certainly should make sure you pay proper customs vat on imported goods so your costs match your predictions. You can surely ensure improved profit margins 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 country. 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 get a vat number and generate a vat invoice for every sale made in the local market. You will now need to file a vat return in the designated period and pay vat in line with the current vat rate based on the sales.

However, before you start selling your goods or services, you might need 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 vatcheck.com need to pay the suitable duties on those goods. In the event you want to import tobacco or alcohol products then you’ll have to pay excise duties on the same. Its thus very important to be sure of the correct classification of your goods so you end up making payment on the exact level of duties specified on it instead of paying more and boosting your costs or paying less and having into trouble later on.

Once you have paid all of 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 conventional vat rate of 17.5% or perhaps a reduced 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 for you to keep updating your knowledge on changes taking place in customs and vat rates, you should appoint a good 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, 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 provide other vat services if your business recently been established.

If you are planning to import goods to the UK or in another EU country a detailed knowledge on all vat rules, customs and excise duties, and procedures on vat returns is critical for healthy business growth. One mistake could result in earning the wrath of the customs and excise vat department and put a spanner on future vat refunds. While importing goods to your country you ought to certainly be sure you pay proper customs vat on imported goods in order to retain complete control over your costs.