If you intend to start a small business in the UK and want to import goods into the country then you certainly should make sure you make payment for proper customs vat on imported goods so that your costs satisfy your predictions. You possibly can surely ensure improved profit margins 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 services and goods in the UK, and also handles vat returns filed by vat registered traders in the united kingdom. Once your taxable sales cross 70,000 pounds in 12 months you might 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'll now need to file a vat return at the designated period and pay vat based on the current vat rate based upon the sales.
However, before you begin 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 appropriate duties on those goods. In case you plan to import tobacco or alcohol products then you will need to pay excise duties on the very same. Its thus extremely important to be sure of the correct classification of your goods so that you find yourself paying the exact amount of duties specified on it rather than pay more and increasing 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 right vat rates while selling those goods locally. Your products might attract the standard vat rate of 17.5% or a lower rate of 5% or even be vat exempt depending on its classification. This rate will definitely vary in other EU countries and therefore 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.
Since it might be quite challenging that you keep updating your knowledge on changes taking place in customs and vat rates, you should appoint a capable customs and vat agent to handle your import and sales duties. Your agent would take care of all paperwork related to 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 offer other vat services if your business recently been established.
If you are planning to import goods to the UK or in any other EU country 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 the customs and excise vat department and put a spanner on future vat refunds. While importing goods to your country you ought to certainly make sure you pay proper customs vat on imported goods in order to retain complete control of your costs.