Running a business in the UK that needs importing goods is usually stressful unless you know about vat customs rules imposed from the HM Revenue and Customs department. Learning all about these rules may benefit your business as you can 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 have to be paid on the valuation of 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 called the ?ad valorem duty? and then there are 6 methods that can be used www.vatregistrationnumber.com to reach the amount of this duty. You will have 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 have imported into the UK.
In case you have imported goods into 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 make an application for vat reclaim so as to get the earlier amount back into your bank account. You will have to 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 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 get. This move will provide an incentive to your vat agent while rewarding you with many successful vat refunds.
Once you’ve paid vat customs on your goods and start 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 during 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 ought to 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 must have complete knowledge on customs and excise rules along with eu vat and uk vat rules to ensure that there are no miscalculations while importing goods to the UK.
If you are a vat registered trader in the UK that must import goods to the UK then you’ll surely have to pay all applicable customs duties on the same. However, you can also reclaim vat amounts paid in the country of origin on goods and also on services that were utilised in that country. A reliable vat agent will help you decipher vat customs rules and help you get back all excess vat previously paid whilst helping smooth entry of imported goods to the UK.