Running a business in Britain that needs importing goods is usually stressful unless you know about vat customs rules imposed by the HM Revenue and Customs department. Learning all about these rules can benefit your organization as you’re able make sure that your purchase and sales deadlines are maintained as well as your cost is 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 the products and they are subject to vat rules that form part of the Vat Act of 1994. The amount of 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 why you’ve chosen vat check a certain method for the valuation of the goods that you’ve imported into the UK.
In case you have imported goods to 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’ve effectively paid double the amount tax on the same goods. If you are 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 need to mention your vat number and provide your vat certificate to the country of origin when you apply 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 expertise of a capable vat agent that charges fees only on the volume of refunds that you receive. This move will give you an incentive for your vat agent while rewarding you with many successful vat refunds.
Once you’ve paid vat customs on the 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 on them. 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. 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 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 aren’t any miscalculations while importing goods to the UK.
If you’re a vat registered trader in the United Kingdom that needs to import goods to the UK then you will 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 also on services that have been utilised in that country. A reliable 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.