Ensure you pay proper customs vat on imported goods

If you intend to start a business in the UK and wish to import goods into the country then you certainly must ensure you make payment for proper customs vat on imported goods so that your costs satisfy your predictions. You can surely ensure improved profit margins if 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 in 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 Twelve months you might have to get vat registration. This in turn will allow you to get a vat number and generate a vat invoice for each sale made in the local market. You’ll now need to file a vat return at the designated period and pay vat in line with the current vat rate based on the sales.

However, before you start selling your goods or services, you may want to import them to the UK. Your goods will in all probability fall into on the list of 14,000 hm customs vat classifications and you’ll vatcheck.com need to pay the appropriate duties on those goods. In the event you want to import tobacco or alcohol products then you’ll have to pay excise duties on the very same. It really is thus very important to be sure of the correct classification of your goods so you find yourself making payment on the exact amount of duties specified on it rather than pay more and boosting your costs or paying less and having into trouble later on.

Once 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 merchandise might attract the standard vat rate of 17.5% or a lower rate of 5% or even be vat exempt depending on its classification. This rate will definitely vary in other EU countries and thus 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 might be quite challenging 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 manage 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 on time. Your agent would also be able to help you in vat registration and offer other vat services if 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 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 should certainly make sure you pay proper customs vat on imported goods in order to retain complete control of your costs.