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Make sure you pay proper customs vat on imported goods


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If you intend to start a business in britain and wish to import goods to the country then you certainly should make sure you pay proper customs vat on imported goods so your costs satisfy your predictions. You possibly can surely ensure improved profit margins if 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 into the UK, and in addition handles vat returns filed by vat registered traders in the country. As soon as your taxable sales cross 70,000 pounds in 12 months then you may need to get vat registration. This in turn allows you to obtain a vat number and generate a vat invoice for each sale made in the regional market. You’ll now need to file a vat return in the designated period and pay vat based on the current vat rate based upon your sales.

However, before you start selling your goods or services, you might need to import them into the UK. Your goods will in all probability fall into one of the 14,000 hm customs vat classifications and you will need to pay the suitable duties on those goods. In case you plan to import tobacco or alcohol products then you will need to pay excise duties on the same. Its thus extremely important to check on the appropriate classification of your goods so you end up making payment on the exact amount of duties specified on it instead of paying more and increasing your costs or paying less and having into trouble at a later date.

After you have paid all the relevant import vat, or customs, or excise duties then you will 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 perhaps a reduced 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.

Since it may be quite challenging for you to keep updating your understanding on changes happening in customs and vat rates, make sure you appoint a capable customs and vat agent to handle all your import and sales duties. Your agent would look after all paperwork related to customs duties, evaluate whether your products are classified correctly, calculate all vat figures and also file your vat returns on time. Your agent would also be able to help you in vat registration and provide other vat services in case your business recently been established.

If you are planning to import goods to the UK or maybe in another 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 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 into your country you ought to certainly be sure you pay proper customs vat on imported goods so as to retain complete control of your costs.