Make sure you pay proper customs vat on imported goods

If you plan to start a business in the UK and wish to import goods to the country then you should make sure you pay proper customs vat on imported goods so that your costs satisfy your predictions. You can surely ensure improved profits when your purchase and sale price are usually in tune with your calculations.

The hm revenue and customs department or hmrc vat department handles duties on imported services and goods into the UK, and in addition handles vat returns filed by vat registered traders in the country. As soon as your taxable sales cross 70,000 pounds in vatcontrol.com 12 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 each sale made in the regional market. You will now need to file a vat return at the designated period and pay vat in line with the current vat rate based on your sales.

However, before you begin selling your goods or services, you may want to import them to the UK. Your goods will in all probability 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. It really is thus extremely important to be sure of the correct classification of your goods so that you end up paying the exact amount of duties specified on it rather than pay more and increasing your costs or paying less and having into trouble at a later date.

After you have paid all the relevant import vat, or customs, or excise duties then you will also need to charge the right vat rates while selling those goods locally. Your products might attract the conventional vat rate of 17.5% or a lower rate of 5% or maybe be vat exempt based on its classification. This rate will definitely 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.

Since it may be very difficult that you keep updating your knowledge on changes happening in customs and vat rates, make sure you appoint a capable customs and vat agent to manage all your import and sales duties. Your agent would take care of all paperwork in connection with customs duties, evaluate whether your products are classified correctly, calculate all vat figures plus file your vat returns on time. Your agent would also be able to assist you in vat registration and provide other vat services if your business recently been established.

If you are planning to import goods into the UK or maybe in any other 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 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 make sure you pay proper customs vat on imported goods so as to retain complete control of your costs.