Operating a business in Britain that needs importing goods can be stressful unless you know about vat customs rules imposed by the HM Revenue and Customs vatcontrol.com/vat department. Learning 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.
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 valuation of the products and are subject to 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 there are 6 methods you can use to reach the amount of this duty. You will need to provide documentary proof to hmrc vat department as to the reasons you have chosen a certain way of the valuation of the goods that you have imported to the UK.
In case you have imported goods to the UK originating 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 same goods. If you’re a vat registered trader in the UK then you can apply for vat reclaim to get the earlier amount back to your bank account. You will have to mention your vat number and provide your vat certificate to the country of origin whenever you file for a vat refund. Although the refund process might take between four to eight months to materialize, your costs will definitely 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 give you a reason for your vat agent while rewarding you with lots of successful vat refunds.
Once you’ve paid vat customs on the 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 on them. You’ll have to mention these vat amounts during your vat returns that will have to be filed regularly in line with the vat scheme that you have chosen. You should remember 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 as well as 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 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 nation of origin on goods and also on services that have been utilized 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.