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 vatcontrol.com/vat department. Learning all about these rules can benefit your business as you can ensure that your purchase and sales deadlines are maintained and your costs are 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 valuation of the products and are governed by vat rules that form part of the Vat Act of 1994. The amount of customs duty to be paid is called the ?ad valorem duty? and 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 have chosen a certain method for the valuation of the products which you have imported to the UK.
In case 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’ve effectively paid double tax on the same goods. If you’re a vat registered trader in the United Kingdom then you can apply for vat reclaim to get the previous amount back into your account. You will have to 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 8 months to materialize, your costs will certainly get lowered. You should 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 many successful vat refunds.
Once you have paid vat customs on the goods and start selling precisely the same under vat invoices then you will have to maintain detailed accounts of the amount of vat paid and collected on them. You will have to mention these vat amounts in your vat returns that will have 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 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 along with eu vat and uk vat rules so that there aren’t any miscalculations while importing goods to the UK.
If you are a vat registered trader in the United Kingdom that needs to import goods to the UK then you will surely need 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 were 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.