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 department. Learning about these rules may benefit your business as you can ensure 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 valuation of the products and they are governed by vat rules that form part of the Vat Act of 1994. How much customs duty to be paid is called the ?ad valorem duty? and then there are 6 methods that can be used to reach the amount of this duty. You will have to provide documentary proof to hmrc vat department as to why you’ve chosen vat check a particular way of the valuation on the products which you’ve imported to the UK.
If you have imported goods to the UK 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 tax on the same goods. If you’re a vat registered trader in the United Kingdom you’ll be able to apply for vat reclaim to get the earlier amount back into your bank account. You will need to mention your vat number and provide your vat certificate to the country of origin when 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 ought to employ the services of a capable vat agent that charges fees only on the volume of refunds that you get. This move will provide an incentive for your vat agent while rewarding you with lots of successful vat refunds.
Once you have paid vat customs on your goods and begin 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 that 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 into 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 should 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 must import goods into the UK then you will surely have to pay all applicable customs duties on the same. However, you may also claim back vat amounts paid in the nation of origin on goods and even on services that have been utilized in that country. A reliable 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.