If you intend to start out a business in the UK and wish to import goods to the country then you certainly should make sure you pay proper customs vat on imported goods so that your costs match your predictions. You 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 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 12 months you might 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 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 upon your sales.
However, before you begin selling your services or goods, you might need to import them to the UK. Your goods will in all probability fall under one of the 14,000 hm customs vat classifications and you will need to pay the suitable duties on those goods. In case you plan to import tobacco or alcohol products then you'll need to pay excise duties on the very same. Its thus extremely important to be sure of 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 getting into trouble later on.
After 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 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 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.
Since it may be quite challenging for you to keep updating your knowledge on changes taking place 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 in connection with customs duties, check on whether your goods are classified correctly, calculate all vat figures plus 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 recently 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 procedures 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 should certainly make sure you pay proper customs vat on imported goods so as to retain complete control of your costs.