Make sure you pay proper customs vat on imported goods

If you intend to start a small business in britain and wish to import goods to the country then you certainly must ensure you make payment for proper customs vat on imported goods so that your costs match your predictions. You 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 goods and services into the UK, and also handles vat returns filed by vat registered traders in the country. Once your taxable sales cross 70,000 pounds in Twelve months you might have 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 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 begin selling your goods or services, you might need to import them into the UK. Your goods will in all probability fall into on the list of 14,000 hm customs vat classifications and you will need to pay the appropriate duties on those goods. In the event you plan to import tobacco or alcohol products then you’ll need to pay excise duties on the very same. Its thus extremely important to be sure of 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 getting into trouble at a later date.

After you have paid all of 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 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 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 may be very difficult that you keep updating your knowledge on changes taking place in customs and vat rates, you should appoint a good customs and vat agent to manage all 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 plus file your vat returns on time. Your agent would also be able to assist you in vat registration and offer other vat services in case your business recently 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 procedures on vat returns is vital 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 ought to certainly make sure you pay proper customs vat on imported goods in order to retain complete control of your costs.