Ensure you pay proper customs vat on imported goods

If you plan to start a business in britain and wish to import goods into the country then you should make sure you pay proper customs vat on imported goods so your costs match your predictions. You possibly can surely ensure improved profit margins when 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 in the UK, and in addition handles vat returns filed by vat registered traders in the country. Once your taxable sales cross 70,000 pounds in 12 months then you may 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 ought to file a vat return at the designated period and pay vat in line with the current vat rate based upon the sales.

However, before you begin selling your services or goods, you may want to import them into the UK. Your goods will in all probability fall under on the list of 14,000 hm customs vat classifications and you will vat check need to pay the appropriate duties on those goods. In case you plan to import tobacco or alcohol products then you’ll need to pay excise duties on the very same. It really is thus very important to check on the appropriate classification of your goods so that you find yourself paying the exact level of duties specified on it rather than pay more and boosting 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 appropriate vat rates while selling those goods locally. Your products might attract the conventional vat rate of 17.5% or a reduced rate of 5% or maybe be vat exempt depending on its classification. This rate will certainly 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.

Simply because it may be quite challenging that you keep updating your understanding on changes happening in customs and vat rates, you should appoint a good customs and vat agent to handle all 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 and also file your vat returns in time. Your agent would likewise 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 in any other EU country 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 your 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 of your costs.