If you intend to start out a business in britain and want to import goods to the country then you should make sure you make payment for 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 your calculations.
The hm revenue and customs department or hmrc vat department handles duties on imported goods and services into the UK, and in addition handles vat returns filed by vat registered traders in the united kingdom. As soon as your taxable sales cross 70,000 pounds in vatcontrol Twelve months you might have to get vat registration. This in turn allows you to obtain 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 based on the current vat rate based on your sales.
However, before you start selling your goods or services, you may want to import them to the UK. Your goods will in all probability fall into one of the 14,000 hm customs vat classifications and you will have to pay the suitable duties on those goods. In the event you plan to import tobacco or alcohol products then you'll need to pay excise duties on the very same. Its thus very important to be sure of the correct classification of your goods so you find yourself paying the exact level of duties specified on it instead of paying more and boosting 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 will also need 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 even be vat exempt based on its classification. This rate will definitely vary in other EU countries and thus 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.
Simply because it might be quite challenging for you to keep updating your knowledge on changes happening in customs and vat rates, you should appoint a good 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 in 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 maybe 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 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 should certainly make sure you pay proper customs vat on imported goods in order to retain complete control of your costs.