Ensure you pay proper customs vat on imported goods

If you plan to start a small business in britain and want 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 profit margins 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 in the UK, and also 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 vatnumbersearch. This in turn will allow you to obtain a vat number and generate a vat invoice for each 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 your 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 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 plan to import tobacco or alcohol products then you’ll have to pay excise duties on the very same. It really is thus very 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 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 products might attract the standard vat rate of 17.5% or perhaps a reduced rate of 5% or even 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 as well as selling them locally.

Simply because it might be quite challenging for you to keep updating your knowledge on changes taking place in customs and vat rates, make sure you appoint a capable customs and vat agent to manage your import and sales duties check out your url. Your agent would look after all paperwork related to customs duties, check on whether your products are classified correctly, calculate all vat figures plus file your vat returns on time. Your agent would likewise be able to help you in vat registration and offer other vat services if your business has just been established.

If you plan to import goods to the UK or in any other EU country then 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 to your country you should certainly be sure you pay proper customs vat on imported goods so as to retain complete control over your costs.