Operating a business in Britain that requires importing goods can be stressful unless you know all about vat customs rules imposed by the HM Revenue and Customs department. Learning about these rules may benefit your business as you can make sure that your purchase and sales deadlines are maintained and your costs are kept to the minimum.
If 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 they are governed by vat rules that form part of the Vat Act of 1994. How much customs duty to generally be paid is known as the ?ad valorem duty? and then 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 have chosen a certain way of the valuation on the goods that you’ve imported to the UK.
If you have imported goods into the UK originating from a eu country that has also collected vat tax from you before the goods were dispatched to the UK then you’ve effectively paid double tax on the same goods. If you are a vat registered trader in the UK you’ll be able to make an application for vat reclaim to get the previous amount back to your bank account. You will need to vatcheck.com/vat mention your vat number and give your vat certificate to the country of origin whenever you apply for a vat refund. Although refund process might take between four to 8 months to materialize, your costs will certainly get lowered. You should employ the expertise of a competent vat agent that charges fees only on the volume of refunds that you receive. This move will give you an incentive to your vat agent while rewarding you with lots of successful vat refunds.
Once you have paid vat customs on your goods and start 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 which will need to be filed regularly in line with the vat scheme that you have chosen. You should remember that any genuine mistake by you while importing goods into 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 along with eu vat and uk vat rules so that there are no miscalculations while importing goods to the UK.
If you’re a vat registered trader in the United Kingdom that needs to import goods into 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 country 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 while also helping smooth entry of imported goods into the UK.