Operating a business in Britain that requires importing goods can be stressful unless you know about vat customs rules imposed from the HM Revenue and Customs department. Learning about these rules may benefit your organization as you can make sure that your purchase and sales deadlines are maintained as well as your cost is kept to the minimum.If you import taxable goods to the UK then you will be charged import vat or customs duties. These duties have to be paid on the value of http://vatcontrol.com/vat the goods and they are subject to vat rules that form part of the Vat Act of 1994. How much customs duty to generally be paid is called the ?ad valorem duty? and then there are 6 methods that can be used to arrive at the amount of this duty. You will need to provide documentary proof to hmrc vat department as to the reasons you’ve chosen a certain way of the valuation of the products which you’ve imported into the UK.
If you have imported goods to the UK originating from a eu country that has also collected vat tax from you before the goods were dispatched to the UK then you have effectively paid double tax on the same goods. If you’re a vat registered trader in the United Kingdom then you can apply for vat reclaim so as to get the earlier amount back into your account. You will have to mention your vat number and give your vat certificate to the country of origin when you apply for a vat refund. Although the refund process could take between four to 8 months to materialize, your costs will certainly get lowered. You should employ the expertise of a competent vat agent that charges fees only on the amount of refunds that you receive. This move will provide an incentive for your vat agent while rewarding you with lots of successful vat refunds.
Once you have paid vat customs on the goods and begin selling the same under vat invoices then you’ll have to maintain detailed accounts of the amount of vat paid and collected on them. You will have to mention these vat amounts during your vat returns that will have to be filed regularly in line with the vat scheme which you have chosen. Remember that that any genuine mistake by you while importing goods to the UK ought to be rectified as quickly as possible as it could be construed as evasion of customs duties and would invoke strict action including penalties from the hmrc department. Your vat agent must have complete knowledge on customs and excise rules along with eu vat and uk vat rules to ensure that there aren’t any miscalculations while importing goods into the UK.
If you’re a vat registered trader in the United Kingdom that must import goods to the UK then you’ll surely have to pay all applicable customs duties on the same. However, you can also claim back vat amounts paid in the country of origin on goods and also on services that have been utilised in that country. A competent vat agent will help you decipher vat customs rules and help you get back all excess vat previously paid while also helping smooth entry of imported goods to the UK.