Make sure you pay proper customs vat on imported goods

If you intend to start out a small business in britain and wish to import goods to the country then you certainly must ensure you pay proper customs vat on imported goods so your costs match 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 services and goods in the UK, and in addition handles vat returns filed by vat registered traders in the united kingdom. Once your taxable sales cross 70,000 pounds in Twelve months then you may need to get vat registration. This in turn allows you to get 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 at the designated period and pay vat in line with the current vat rate based on the sales.

However, before you start selling your services or goods, you may want to import them into the UK. Your goods will most probably fall into one of the 14,000 hm customs vat classifications and you will need to pay the suitable duties on those goods. In the event you want to import tobacco or alcohol products then you will need to pay excise duties on the very same. It is thus very important to be sure of the appropriate classification of your goods so you find yourself making payment on the exact level of duties specified on it rather than pay more and boosting your costs or paying less and having 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 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 based on its classification. This rate will certainly 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 understanding on changes happening in customs and vat rates, make sure you appoint a capable customs and vat agent to handle your import and sales duties. Your agent would take care of all paperwork in connection with customs duties, check on whether your goods are classified correctly, calculate all vat figures plus file your vat returns on time. Your agent would likewise be able to assist 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 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 the customs and excise vat department and put a spanner on future vat refunds. While importing goods into your country you should certainly be sure you pay proper customs vat on imported goods so as to retain complete control over your costs.