Make sure you pay proper customs vat on imported goods
If you intend to start a small business in britain and want to import goods into the country then you should make sure you make payment for proper customs vat on imported goods so that your costs match your predictions. You can surely ensure improved profits if your purchase and sale price are in tune
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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 then you may need to get vat registration. This in turn allows you to obtain a vat number and generate a vat invoice for every sale made in the local market. You’ll now need to file a vat return in the designated period and pay vat based on the current vat rate based on the sales.
However, before you start selling your services or goods, you may want to import them to the UK. Your goods will in all probability fall into on the list of 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 have to pay excise duties on the same. It really is thus very important to be sure of the correct classification of your goods so that 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 getting into trouble later on.
After you have paid all of the relevant import vat, or customs, or excise duties then you will also have to charge the right vat rates while selling those goods locally. Your merchandise might attract the conventional 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 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 may be very difficult 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, 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 assist you in vat registration and offer other vat services in case your business has just been established.
If you are planning to import goods into the UK or in another 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 into your country you should certainly be sure you pay proper customs vat on imported goods in order to retain complete control over your costs.
