Running a business in Britain that needs importing goods is usually stressful unless you know about vat customs rules imposed from the HM Revenue and Customs department. Learning about these rules can 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.
In case you import taxable goods into the UK you will then be charged import vat or customs duties. These duties need to be paid on the value of the goods and they are governed by vat rules that form part of the Vat Act of 1994. The amount of customs duty to generally be paid is called 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’ve chosen a particular method for the valuation of the products which you’ve imported to the UK.
If you have imported goods into the UK originating 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 the amount tax on the same goods. If you’re a vat registered trader in the UK you’ll be able to make an application for vat reclaim so as to get the previous amount back to your account. You will need to https://vatcheck.com/vat mention your vat number and give your vat certificate to the country of origin when you apply for a vat refund. Although refund process could take between four to eight months to materialize, your costs will definitely 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 give you a reason for your vat agent while rewarding you with many successful vat refunds.
Once you have paid vat customs on the goods and begin selling precisely the same under vat invoices then you will need to maintain detailed accounts of the level of vat paid and collected built in. You will have to mention these vat amounts in your vat returns which will need to be filed regularly in line with the vat scheme that you have chosen. You should remember that any genuine mistake by you while importing goods to the UK should be rectified as quickly as possible since 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 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 UK that needs to import goods into the UK then you’ll surely need 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 also on services that were utilized in that country. A reliable vat agent can help you decipher vat customs rules and help you get back all excess vat previously paid while also helping smooth entry of imported goods into the UK.