Make sure you pay proper customs vat on imported goods

If you intend to start a small business in the UK and want 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 satisfy your predictions. You can surely ensure improved profit margins 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 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 need to get vat registration. Thus allows you to obtain a vat number and generate a vat invoice for every sale made in the regional market. You will 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 goods or services, you may want 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 will vatcheck.com have to pay the appropriate 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 find yourself making payment on the exact amount of duties specified on it instead of paying more and increasing your costs or paying less and getting into trouble later on.

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

Simply because it may be very difficult that you keep updating your knowledge on changes happening in customs and vat rates, you should appoint a good customs and vat agent to handle all your import and sales duties. Your agent would take care of all paperwork related to customs duties, evaluate whether your goods are classified correctly, calculate all vat figures and also file your vat returns on time. Your agent would likewise be able to help 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 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 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.