Running a business in Britain that needs importing goods is usually stressful unless you know all about vat customs rules imposed by the HM Revenue and Customs department. Learning all about these rules may benefit your organization as you’re able ensure that your purchase and sales deadlines are maintained as well as your costs are kept to the minimum.
If you import taxable goods to the UK you will then be charged import vat or customs duties. These duties have to be paid on the valuation of the goods and are governed by vat rules that form part of the Vat Act of 1994. The amount of customs duty to generally be paid is called the ?ad valorem duty? and then there are 6 methods you can use to arrive at the amount of this duty. You will need to provide documentary proof to hmrc vat department as to why you have chosen vatcheck.com a particular way of the valuation on the goods that you’ve imported to the UK.
In case you have imported goods into 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 tax on the very same goods. If you are a vat registered trader in the United Kingdom then you can make an application for vat reclaim so as to get the earlier amount back into your bank account. You will have to mention your vat number and give your vat certificate to the country of origin when 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 ought to 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 the same under vat invoices then you’ll need to maintain detailed accounts of the amount of vat paid and collected built in. You will have to mention these vat amounts in your vat returns which will have to be filed regularly in line with the vat scheme that you have chosen. Remember that that any genuine mistake on your part while importing goods to the UK should be rectified as soon 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 must 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 into the UK.
If you are a vat registered trader in the United Kingdom that must import goods into the UK then you’ll surely need 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 have been utilised in that country. A competent 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.