Operating a business in the UK that needs importing goods can be stressful unless you know about vat customs rules imposed from the HM Revenue and Customs department. Learning about these rules can benefit your business as you can ensure that your purchase and sales deadlines are maintained as well as your costs are kept to the minimum.
In case you import taxable goods to the UK you will then be charged import vat or customs duties. These duties need to be paid on the value of the products 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 known as the ?ad valorem duty? and there are 6 methods you can use vatregistrationnumber 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 certain way of the valuation of the goods that you have 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 prior to goods were dispatched to the UK then you have effectively paid double the amount tax on the same goods. If you are a vat registered trader in the United Kingdom you’ll be able to make an application for vat reclaim to get the earlier amount back to your account. You will have to mention your vat number and give your vat certificate to the country of origin whenever you apply for a vat refund. Although the refund process might take between four to 8 months to materialize, your costs will certainly get lowered. You ought to employ the services of a capable vat agent that charges fees only on the amount of refunds that you get. This move will provide an incentive to your vat agent while rewarding you with lots of 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 level of vat paid and collected built in. You’ll have to mention these vat amounts in your vat returns that will need to be filed regularly based on the vat scheme which you have chosen. You should remember that any genuine mistake by you while importing goods to the UK ought to be rectified as quickly as possible since it could 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 United Kingdom that needs to import goods to the UK then you’ll surely need to pay all applicable customs duties on the very same. However, you may also reclaim vat amounts paid in the nation of origin on goods and also on services that were utilised in that country. A reliable vat agent can 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.