Ensure you pay proper customs vat on imported goods

If you intend to start a business in the UK and wish to import goods to the country then you should make sure you make payment for proper customs vat on imported goods so that 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 also 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 vatnumbersearch.com. This in turn will allow you to get 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 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 have to pay the suitable duties on those goods. In case you want to import tobacco or alcohol products then you will have to pay excise duties on the same. It is thus very important to check on the appropriate classification of your goods so that you find yourself making payment on the exact level of duties specified on it instead of paying more and increasing your costs or paying less and having into trouble later on.

After you have paid all of the relevant import vat, or customs, or excise duties then you’ll also have to charge the right vat rates while selling those goods locally. Your products might attract the conventional vat rate of 17.5% or a lower rate of 5% or even 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 or even selling them locally.

Simply because it might be very difficult that you keep updating your understanding on changes happening in customs and vat rates, make sure you appoint a good customs and vat agent to manage your import and sales duties go here. Your agent would take care of all paperwork related to customs duties, check on whether your goods are classified correctly, calculate all vat figures and also file your vat returns in time. Your agent would likewise be able to assist you in vat registration and provide other vat services if your business recently been established.

If you are planning 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 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 into your country you ought to certainly be sure you pay proper customs vat on imported goods so as to retain complete control over your costs.