Make sure you pay proper customs vat on imported goods

If you intend to start a small business in britain and wish to import goods into the country then you certainly must ensure you make payment for proper customs vat on imported goods so your costs satisfy your predictions. You can surely ensure improved profit margins if 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 services and goods into 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 will allow 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 at the designated period and pay vat in line with the current vat rate based on your sales.

However, before you start selling your goods or services, you may want to import them into the UK. Your goods will in all probability fall under one of the 14,000 hm customs vat classifications and you will have to pay the suitable duties on those goods. In case you want to import tobacco or alcohol products then you will need to pay excise duties on the very same. It really is thus extremely important to be sure of the appropriate classification of your goods so you end up paying the exact amount of duties specified on it instead of paying more and boosting your costs or paying less and having into trouble at a later date.

Once 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 depending on its classification. This rate will certainly 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 or even selling them locally.

Simply because it might be very difficult for you to 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 in time. Your agent would also 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 into the UK or maybe 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 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.