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Ensure you pay proper customs vat on imported goods


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If you plan to start a small business in the UK and want to import goods into the country then you must ensure you make payment for proper customs vat on imported goods so your costs match your predictions. You can surely ensure improved profit margins 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 goods and services in 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 get a vat number and generate a vat invoice for each sale made in the regional market. You’ll now ought to file a vat return in the designated period and pay vat based on the current vat rate based upon the sales.

However, before you begin selling your services or goods, you may want to import them to the UK. Your goods will most probably fall into one of the 14,000 hm customs vat classifications and you will need to pay the suitable duties on those goods. In the event you plan to import tobacco or alcohol products then you’ll have to pay http://vatcontrol.com/vat excise duties on the very same. Its thus extremely important to check on the appropriate classification of your goods so that you find yourself making payment on the exact amount of duties specified on it rather than pay more and increasing your costs or paying less and having into trouble at a later date.

After you have paid all of 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 reduced rate of 5% or even be vat exempt based 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 or even selling them locally.

Simply because it may be quite challenging that you keep updating your knowledge on changes happening in customs and vat rates, you should appoint a good customs and vat agent to manage your import and sales duties. Your agent would look after all paperwork in connection with 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 assist you in vat registration and offer 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 a detailed knowledge on all vat rules, customs and excise duties, and procedures 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 to your country you should certainly be sure you pay proper customs vat on imported goods in order to retain complete control over your costs.