Make sure you pay proper customs vat on imported goods

If you plan to start out a small business in britain and want to import goods to the country then you certainly must ensure you pay proper customs vat on imported goods so your costs satisfy your predictions. You can surely ensure improved profit margins when your purchase and sale price are in tune

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with your calculations.

The hm revenue and customs department or hmrc vat department handles duties on imported services and goods into the UK, and also handles vat returns filed by vat registered traders in the united kingdom. As soon as your taxable sales cross 70,000 pounds in Twelve months you might have 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’ll now ought to file a vat return in the designated period and pay vat in line with the current vat rate based upon the sales.

However, before you start selling your goods or services, you might need to import them into the UK. Your goods will most probably fall into one of the 14,000 hm customs vat classifications and you’ll need to pay the appropriate duties on those goods. In the event you plan to import tobacco or alcohol products then you will need to pay excise duties on the very same. It is thus extremely important to check on the appropriate classification of your goods so you find yourself making payment on 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 have to charge the appropriate vat rates while selling those goods locally. Your merchandise might attract the standard vat rate of 17.5% or a reduced rate of 5% or maybe be vat exempt depending 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.

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 all your import and sales duties. Your agent would look after all paperwork related to customs duties, check on whether your products are classified correctly, calculate all vat figures and also file your vat returns on time. Your agent would also be able to help you in vat registration and provide other vat services in case your business has just been established.

If you plan to import goods to the UK or maybe 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 you could end up earning the wrath of your 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 of your costs.