Make sure you pay proper customs vat on imported goods

If you intend to start out a small business in the UK and wish to import goods to 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 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 into the UK, and also handles vat returns filed by vat registered traders in the united kingdom. Once your taxable sales cross 70,000 pounds in 12 months then you may need to get vat registration. Thus allows you to obtain a vat number and generate a vat invoice for every sale made in the local market. You’ll now ought 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 begin selling your services or goods, you might need to import them into the UK. Your goods will in all probability fall into on the list of 14,000 hm customs vat classifications and you’ll 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 vatcontrol.com/vat excise duties on the same. Its thus extremely important to be sure of the correct classification of your goods so you end up making payment on the exact amount of duties specified on it rather than pay more and increasing your costs or paying less and getting into trouble at a later date.

Once you have paid all of the relevant import vat, or customs, or excise duties then you will also need 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 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 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 handle all your import and sales duties. Your agent would look after all paperwork related to customs duties, check on whether your goods 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 provide other vat services if 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 vital for healthy business growth. One mistake could result in 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.