Running a business in the UK that needs importing goods can be stressful unless you know about vat customs rules imposed from the HM Revenue and Customs vatcontrol.com/vat department. Learning 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 costs are kept to the minimum.
In case you import taxable goods into the UK then you will be charged import vat or customs duties. These duties have 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 generally be paid is called 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’ve chosen a certain way of the valuation on the products which you have imported to the UK.
If 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 have 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 so as to get the previous amount back to your bank account. You will need to mention your vat number and give your vat certificate to the country of origin when you apply for a vat refund. Although refund process could take between four to eight months to materialize, your costs will definitely get lowered. You ought to employ the services of a capable vat agent that charges fees only on the amount of refunds that you get. This move will provide a reason to your vat agent while rewarding you with many successful vat refunds.
Once you have paid vat customs on the goods and begin selling the same under vat invoices then you’ll need 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 which will need to be filed regularly in line with the vat scheme which you have chosen. You should remember that any genuine mistake on your part while importing goods to the UK should be rectified as soon 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 must 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 to the UK.
If you’re a vat registered trader in the UK that needs to 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 country of origin on goods and even on services that were utilised in that country. A reliable vat agent can help you decipher vat customs rules and help you to get back all excess vat previously paid while also helping smooth entry of imported goods to the UK.