Operating a business in Britain that needs importing goods is usually stressful unless you know all about vat customs rules imposed from the HM Revenue and Customs http://vatcontrol.com/vat 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 into the UK you will then be charged import vat or customs duties. These duties need to be paid on the value of the products and they are subject to 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 you can use 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 have imported into the UK.
In case you have imported goods into the UK from a eu country which 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 are a vat registered trader in the UK you’ll be able to make an application for vat reclaim so as to get the earlier amount back into your bank 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 services of a competent vat agent that charges fees only on the volume of refunds that you get. 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 start selling the same under vat invoices then you will 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 that will need to be filed regularly in line with the vat scheme which you have chosen. Remember that that any genuine mistake by you while importing goods into the UK should be rectified as soon as possible as it may 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 to ensure that there are no miscalculations while importing goods into 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 very same. However, you may also claim back vat amounts paid in the nation of origin on goods and also on services that have been utilised in that country. A competent vat agent will 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.