Running a business in the UK that requires importing goods can be stressful unless you know about vat customs rules imposed by the HM Revenue and Customs department. Learning about these rules can benefit your business as you can make sure that your purchase and sales deadlines are maintained and your cost is kept to the minimum.
In case you import taxable goods to the UK you will then be charged import vat or customs duties. These duties need to be paid on the valuation of the goods and they are subject to vat rules that form part of the Vat Act of 1994. The amount of customs duty to generally be paid is known as the ?ad valorem duty? and then there are 6 methods you can use vatregistrationnumber to arrive at the amount of this duty. You will have to provide documentary proof to hmrc vat department as to why you have chosen a certain method for the valuation of the products which you have imported into the UK.
If you have imported goods into the UK originating 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 tax on the 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 previous amount back to 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 ought to employ the services of a capable vat agent that charges fees only on the amount of refunds that you receive. This move will provide a reason for your vat agent while rewarding you with lots of successful vat refunds.
Once you’ve paid vat customs on the goods and start selling precisely the same under vat invoices then you will have to maintain detailed accounts of the amount of vat paid and collected built in. You’ll have to mention these vat amounts during your vat returns which will have 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 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 to 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 have to pay all applicable customs duties on the same. However, you can also reclaim vat amounts paid in the nation 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 whilst helping smooth entry of imported goods into the UK.