Running 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 all about these rules can benefit your business 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 then you will be charged import vat or customs duties. These duties need to be paid on the valuation of http://vatcontrol.com/vat the goods and are governed by 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 that can be used 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 method for the valuation of the goods that you have imported into the UK.
If you have imported goods into the UK from a eu country which has also collected vat tax from you before the goods were dispatched to the UK then you have 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 earlier amount back to your bank 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 refund process might take between four to eight months to materialize, your costs will certainly get lowered. You should employ the services of a capable vat agent that charges fees only on the volume of refunds that you receive. This move will provide an incentive for your vat agent while rewarding you with many successful vat refunds.
Once you have paid vat customs on the goods and begin selling 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 into the UK ought to 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 must have complete knowledge on customs and excise rules as well as eu vat and uk vat rules to ensure that there are no miscalculations while importing goods into the UK.
If you are a vat registered trader in the UK that needs to import goods into the UK then you will 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 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 into the UK.