Running a business in Britain that needs importing goods can be stressful unless you know all about vat customs rules imposed by the HM Revenue and Customs department. Learning all about these rules can benefit your organization as you can make sure that your purchase and sales deadlines are maintained as well as your costs are kept to the minimum.
If you import taxable goods to the UK you will then be charged import vat or customs duties. These duties have to be paid on the valuation of the goods and they are subject to vat rules that form part of the Vat Act of 1994. The amount of customs duty to be paid is known as the ?ad valorem duty? and then there are 6 methods you can use to reach the amount of this duty. You will have to provide documentary proof to hmrc vat department as to why you have chosen a certain way of the valuation of the goods that you’ve imported into the UK.
In case you have imported goods into the UK from a eu country which has also collected vat tax from you prior to goods were dispatched to the UK then you’ve effectively paid double the amount tax on the very same goods. If you are a vat registered trader in the United Kingdom you’ll be able to make an application for vat reclaim to get the previous amount back into your bank account. You will need to http://vatcheck.com/vat mention your vat number and provide your vat certificate to the country of origin whenever you file for a vat refund. Although the refund process might take between four to 8 months to materialize, your costs will certainly get lowered. You should employ the services of a competent vat agent that charges fees only on the volume of refunds that you receive. This move will give you a reason for your vat agent while rewarding you with lots of successful vat refunds.
Once you have paid vat customs on your goods and begin selling precisely the same under vat invoices then you’ll need to maintain detailed accounts of the level of vat paid and collected built in. You’ll have to mention these vat amounts during your vat returns that will need 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 should be rectified as quickly as possible as it may be construed as evasion of customs duties and would invoke strict action including penalties from the hmrc department. Your vat agent should have complete knowledge on customs and excise rules along with eu vat and uk vat rules so that there aren’t any miscalculations while importing goods to the UK.
If you’re a vat registered trader in the United Kingdom that must import goods to the UK then you will surely have to pay all applicable customs duties on the same. However, you may also claim back vat amounts paid in the country of origin on goods and even on services that have been utilized in that country. A reliable 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.