Operating a business in the UK that needs importing goods can be stressful unless you know all about vat customs rules imposed from the HM Revenue and Customs department. Learning about these rules can benefit your organization 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 goods and are subject to 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 need to provide documentary proof to hmrc vat department as to why you have chosen a particular way of the valuation on 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 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 so as to get the previous amount back into your bank account. You will have to https://vatcheck.com/vat mention your vat number and provide your vat certificate to the country of origin whenever you apply for a vat refund. Although refund process could take between four to eight months to materialize, your costs will certainly get lowered. You ought to employ the expertise of a competent 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 have paid vat customs on the goods and begin selling precisely the same under vat invoices then you will have to maintain detailed accounts of the amount of vat paid and collected built in. You’ll have to mention these vat amounts in your vat returns which will need to be filed regularly based on the vat scheme which you have chosen. You should remember that any genuine mistake on your part 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 should 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 needs to import goods into the UK then you will surely need to pay all applicable customs duties on the same. However, you can also claim back vat amounts paid in the nation of origin on goods and even on services that have been utilised in that country. A reliable vat agent can help you decipher vat customs rules and help you get back all excess vat previously paid whilst helping smooth entry of imported goods into the UK.