Make sure you pay proper customs vat on imported goods

If you plan to start out a small business in the UK and wish to import goods to the country then you should make sure you pay proper customs vat on imported goods so your costs satisfy your predictions. You can surely ensure improved profit margins when your purchase and sale price are in tune

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The hm revenue and customs department or hmrc vat department handles duties on imported goods and services in 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. This in turn allows you to get a vat number and generate a vat invoice for each sale made in the local market. You will now need to file a vat return at the designated period and pay vat based on the current vat rate based on the sales.

However, before you begin selling your services or goods, you may want to import them into the UK. Your goods will in all probability fall under one of the 14,000 hm customs vat classifications and you’ll need to pay the suitable duties on those goods. In the event you plan to import tobacco or alcohol products then you will need to pay excise duties on the very same. It is thus very important to be sure of the appropriate classification of your goods so you end up paying the exact level of duties specified on it instead of paying more and increasing your costs or paying less and getting into trouble later on.

Once you have paid all 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 certainly 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 might be very difficult for you to keep updating your understanding on changes taking place in customs and vat rates, make sure you appoint a good customs and vat agent to manage your import and sales duties. Your agent would take care of 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 likewise be able to assist you in vat registration and offer other vat services in case your business recently been established.

If you are planning to import goods into the UK or maybe in any other EU country a detailed knowledge on all vat rules, customs and excise duties, and procedures on vat returns is vital 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 make sure you pay proper customs vat on imported goods so as to retain complete control of your costs.