Operating a business in the UK that needs importing goods can be stressful unless you know about vat customs rules imposed by the HM Revenue and Customs department. Learning all about these rules can benefit your business as you’re able ensure that your purchase and sales deadlines are maintained and your costs are kept to the minimum.
In case you import taxable goods to the UK then you will be charged import vat or customs duties. These duties have to be paid on the value of the products and are governed by vat rules that form part of the Vat Act of 1994. How much customs duty to generally be paid is called the ?ad valorem duty? and then 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 method for the valuation on the products which you’ve imported to the UK.
In case you have imported goods to 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 have effectively paid double the amount tax on the same goods. If you’re a vat registered trader in the UK you’ll be able to apply for vat reclaim to get the previous amount back into your bank account. You will have to www.vatcheck.com/vat mention your vat number and give your vat certificate to the country of origin whenever you file for a vat refund. Although the refund process could take between four to 8 months to materialize, your costs will definitely get lowered. You should employ the expertise of a capable vat agent that charges fees only on the amount of refunds that you receive. This move will provide a reason 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 precisely the same under vat invoices then you will have to maintain detailed accounts of the level of vat paid and collected on them. You will have to mention these vat amounts in your vat returns that will have 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 should be rectified as quickly as possible as 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 aren’t any miscalculations while importing goods into the UK.
If you are a vat registered trader in the UK that needs to import goods to the UK then you will 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 even on services that have been utilized in that country. A competent vat agent will help you decipher vat customs rules and help you get back all excess vat previously paid while also helping smooth entry of imported goods to the UK.