If you plan to start a small business in britain and want to import goods into the country then you must ensure you make payment for proper customs vat on imported goods so your costs satisfy your predictions. You can surely ensure improved profits if 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 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 12 months you might have 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'll now ought to file a vat return at the designated period and pay vat in line with the current vat rate based on the sales.
However, before you begin selling your services or goods, you may want to import them into the UK. Your goods will most probably fall under on the list of 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 vatcontrol.com/vat excise duties on the same. It really is thus very important to check on the appropriate classification of your goods so that you find yourself paying 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.
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 merchandise might attract the standard vat rate of 17.5% or perhaps a reduced rate of 5% or maybe be vat exempt depending on its classification. This rate will definitely 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 or even selling them locally.
Simply because it might be very difficult for you to keep updating your understanding on changes happening in customs and vat rates, make sure you 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 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 offer other vat services in case your business recently been established.
If you are planning to import goods into the UK or in any other 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 the customs and excise vat department and put a spanner on future vat refunds. While importing goods to your country you should certainly make sure you pay proper customs vat on imported goods so as to retain complete control of your costs.