Operating a business in Britain that needs importing goods is usually stressful unless you know about vat customs rules imposed by the HM Revenue and Customs department. Learning about these rules may benefit your business as you’re able make sure that your purchase and sales deadlines are maintained and your cost is kept to the minimum.If 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 valuation of vatcontrol.com/vat 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 have to provide documentary proof to hmrc vat department as to the reasons you’ve chosen a certain method for the valuation of the goods that you’ve imported into the UK.
In case you have imported goods to the UK 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 the amount tax on the same goods. If you’re a vat registered trader in the UK you’ll be able to make an application for vat reclaim to get the previous amount back into your account. You will need to 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 volume of refunds that you receive. This move will provide 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 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 that will need 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 ought to be rectified as soon 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 as well as eu vat and uk vat rules so that there are no miscalculations while importing goods into the UK.
If you are a vat registered trader in the United Kingdom that needs to import goods into the UK then you’ll surely need to pay all applicable customs duties on the very same. However, you can also claim back vat amounts paid in the country of origin on goods and even on services that were utilized in that country. A competent 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 into the UK.