Running a business in Britain that requires 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 may benefit your organization as you can ensure that your purchase and sales deadlines are maintained as well as your cost is kept to the minimum.
In case 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 valuation of the products and are subject to vat rules that form part of the Vat Act of 1994. How much customs duty to generally be paid is known as the ?ad valorem duty? and then there are 6 methods you can use to arrive at the amount of this duty. You will have to provide documentary proof to hmrc vat department as to why you have chosen vat check a certain way of the valuation on the products which you have imported to the UK.
If you have imported goods to the UK from a eu country which has also collected vat tax from you before the goods were dispatched to the UK then you’ve effectively paid double tax on the same goods. If you are a vat registered trader in the United Kingdom then you can apply for vat reclaim so as to get the previous amount back into your account. You will need to mention your vat number and give your vat certificate to the country of origin whenever you apply for a vat refund. Although the refund process could take between four to 8 months to materialize, your costs will definitely get lowered. You ought to employ the services of a competent vat agent that charges fees only on the volume of refunds that you get. This move will provide a reason for your vat agent while rewarding you with many successful vat refunds.
Once you have paid vat customs on the goods and start selling precisely the same under vat invoices then you’ll need to maintain detailed accounts of the amount of vat paid and collected built in. You will have to mention these vat amounts during your vat returns which will have to be filed regularly in line with the vat scheme that 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 should have complete knowledge on customs and excise rules as well as eu vat and uk vat rules so that there are no miscalculations while importing goods to the UK.
If you are a vat registered trader in the United Kingdom that needs to import goods into the UK then you’ll surely have to pay all applicable customs duties on the very same. However, you can also claim back vat amounts paid in the nation of origin on goods and also on services that have been utilized in that country. A reliable vat agent will help you decipher vat customs rules and help you to get back all excess vat previously paid while also helping smooth entry of imported goods into the UK.