If you intend to start out a business in the UK and wish to import goods to the country then you certainly must ensure you make payment for proper customs vat on imported goods so your costs satisfy your predictions. You possibly 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 united kingdom. Once your taxable sales cross 70,000 pounds in 12 months then you may need to get vat registration. Thus allows you to obtain a vat number and generate a vat invoice for each sale made in the regional market. You will now ought to file a vat return in the designated period and pay vat based on the current vat rate based upon the sales.
However, before you start selling your services or goods, you may want to import them to the UK. Your goods will most probably fall under one of the 14,000 hm customs vat classifications and you will need to pay the appropriate duties on those goods. In case you want to import tobacco or alcohol products then you'll have to pay excise duties on the very same. Its thus very important to check on the appropriate classification of your goods so that you find yourself making payment on the exact amount of duties specified on it rather than pay more and increasing your costs or paying less and getting into trouble later on.
Once you have paid all of the relevant import vat, or customs, or excise duties then you will also have to charge the appropriate 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 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 as well as selling them locally.
Simply because it might be very difficult that you keep updating your understanding on changes taking place in customs and vat rates, you should appoint a good customs and vat agent to manage all your import and sales duties. Your agent would look after all paperwork in connection with customs duties, check on whether your products 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 offer other vat services if your business has just been established.
If you are planning to import goods to 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 you could end up 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 in order to retain complete control over your costs.