Running a business in Britain that requires 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 can benefit your organization as you can make sure 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 have to be paid on the value of vatcontrol.com/vat the products and they are governed by 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 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 way of the valuation on the products which 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’ve effectively paid double tax on the same goods. If you’re a vat registered trader in the UK 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 need 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 could take between four to eight months to materialize, your costs will certainly get lowered. You should employ the services of a competent vat agent that charges fees only on the amount of refunds that you get. This move will provide an incentive for your vat agent while rewarding you with lots of successful vat refunds.
Once you’ve paid vat customs on your goods and begin selling the same under vat invoices then you’ll 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 that will need to be filed regularly in line with the vat scheme that you have chosen. Remember that that any genuine mistake by you while importing goods to the UK ought to be rectified as soon as possible as 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 into the UK.
If you’re a vat registered trader in the United Kingdom that must import goods to the UK then you’ll surely need to pay all applicable customs duties on the same. However, you may also claim back vat amounts paid in the country of origin on goods and even on services that were utilised in that country. A competent 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.