Operating a business in the UK that needs importing goods is usually stressful unless you know all about vat customs rules imposed from the HM Revenue and Customs department. Learning about these rules may benefit your organization as you’re able 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 then you will be charged import vat or customs duties. These duties have to be paid on the valuation of the products and they are subject to vat rules that form part of the Vat Act of 1994. How much customs duty to be paid is known as the ?ad valorem duty? and there are 6 methods you can use vatregistrationnumber to arrive at the amount of this duty. You will have to provide documentary proof to hmrc vat department as to why you’ve chosen a certain way of the valuation of the products which you’ve imported into the UK.
In case you have imported goods to the UK from a eu country that 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’re a vat registered trader in the United Kingdom you’ll be able to apply for vat reclaim so as to get the earlier amount back to your account. You will have to mention your vat number and provide your vat certificate to the country of origin whenever you apply for a vat refund. Although the refund process might take between four to 8 months to materialize, your costs will certainly get lowered. You ought to employ the services of a competent vat agent that charges fees only on the amount of refunds that you receive. This move will give you a reason to your vat agent while rewarding you with many successful vat refunds.
Once you’ve paid vat customs on your goods and begin selling the same under vat invoices then you will need to maintain detailed accounts of the amount of vat paid and collected built in. You will have to mention these vat amounts in your vat returns which will have to be filed regularly based on the vat scheme that you have chosen. Remember that that any genuine mistake on your part while importing goods into the UK should be rectified as soon as possible since 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 so that there are no miscalculations while importing goods to the UK.
If you’re 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 reclaim vat amounts paid in the country of origin on goods and also on services that were utilized in that country. A competent 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 to the UK.