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 your costs match your predictions. You can surely ensure improved profit margins if 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 also handles vat returns filed by vat registered traders in the country. As soon as your taxable sales cross 70,000 pounds in www.vatcontrol.com Twelve months then you may have to get vat registration. Thus allows you to get a vat number and generate a vat invoice for every sale made in the regional market. You will 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 start selling your services or goods, you might need to import them to the UK. Your goods will most probably fall into on the list of 14,000 hm customs vat classifications and you will need to pay the appropriate duties on those goods. In case you plan to import tobacco or alcohol products then you’ll have to pay excise duties on the very same. It really is thus extremely important to check on the appropriate classification of your goods so 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 need to charge the right vat rates while selling those goods locally. Your products 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 certainly vary in other EU countries and therefore you ought to have up-to-date knowledge on uk vat and eu vat rates while importing or exporting your goods as well as selling them locally.

Simply because it may be quite challenging for you to keep updating your knowledge 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 related to 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 assist you in vat registration and provide 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 then a detailed knowledge on all vat rules, customs and excise duties, and operations on vat returns is critical 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.