Operating 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 about these rules may benefit your business as you’re able make sure that your purchase and sales deadlines are maintained and your cost is kept to the minimum.
If 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 are subject to vat rules that form part of the Vat Act of 1994. How much customs duty to generally be paid is called the ?ad valorem duty? and then there are 6 methods that can be used to arrive at the amount of this duty. You will need to provide documentary proof to hmrc vat department as to the reasons you have chosen a particular method for the valuation of the goods that you’ve imported to the UK.
In case 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 have 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 apply for vat reclaim to get the earlier amount back to your bank account. You will have to vatcheck.com/vat mention your vat number and give your vat certificate to the country of origin when you file for a vat refund. Although the refund process might take between four to 8 months to materialize, your costs will definitely get lowered. You ought to employ the expertise of a capable vat agent that charges fees only on the amount of refunds that you receive. This move will provide 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 start selling precisely the same under vat invoices then you’ll need to maintain detailed accounts of the amount of vat paid and collected on them. You will have to mention these vat amounts during your vat returns that will need to be filed regularly based on the vat scheme which you have chosen. Remember that that any genuine mistake on your part while importing goods into the UK ought to be rectified as soon 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 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’re a vat registered trader in the UK that must 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 country 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 whilst helping smooth entry of imported goods into the UK.