Make sure you pay proper customs vat on imported goods

If you plan to start out a business in britain and wish to import goods into the country then you should make sure you make payment for proper customs vat on imported goods so your costs satisfy your predictions. You possibly 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 goods and services in 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 vatcontrol.com 12 months you might have to get vat registration. This in turn will allow you to obtain a vat number and generate a vat invoice for every sale made in the local market. You will now need to file a vat return in 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 might need to import them to the UK. Your goods will in all probability fall under on the list of 14,000 hm customs vat classifications and you'll have 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 is thus extremely important to check on the appropriate classification of your goods so that you end up paying the exact level of duties specified on it rather than pay more and increasing 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'll also need to charge the appropriate vat rates while selling those goods locally. Your merchandise might attract the standard 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 therefore you ought to 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 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 look after all paperwork in connection with customs duties, evaluate whether your goods are classified correctly, calculate all vat figures plus file your vat returns on time. Your agent would also be able to help you in vat registration and provide other vat services if your business recently 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 procedures on vat returns is critical for healthy business growth. One mistake you could end up earning the wrath of the customs and excise vat department and put a spanner on future vat refunds. While importing goods to your country you ought to certainly be sure you pay proper customs vat on imported goods so as to retain complete control over your costs.