Ensure you pay proper customs vat on imported goods

If you plan to start out a business in the UK and wish to import goods to the country then you certainly must ensure you pay proper customs vat on imported goods so that your costs match your predictions. You possibly can surely ensure improved profits when your purchase and sale price are in tune with 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 united kingdom. As soon as your taxable sales cross 70,000 pounds in vat control Twelve months you might need 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 will now need to file a vat return at the designated period and pay vat in line with the current vat rate based upon the sales.

However, before you start selling your services or goods, you may want to import them to the UK. Your goods will most probably fall under on the list of 14,000 hm customs vat classifications and you will have to pay the appropriate duties on those goods. In the event you want to import tobacco or alcohol products then you will need to pay excise duties on the very same. Its thus extremely important to check on the correct classification of your goods so you find yourself paying the exact level of duties specified on it instead of paying more and increasing your costs or paying less and having into trouble later on.

Once you have paid all the relevant import vat, or customs, or excise duties then you’ll 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 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.

Simply because it may be very difficult for you to keep updating your knowledge on changes taking place in customs and vat rates, make sure you appoint a good 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 products are classified correctly, calculate all vat figures plus file your vat returns in time. Your agent would likewise be able to assist you in vat registration and provide other vat services in case your business has just been established.

If you are planning to import goods into 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 critical for healthy business growth. One mistake could result in earning the wrath of the 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 in order to retain complete control over your costs.