Running a business in Britain 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 can benefit your organization as you can make sure that your purchase and sales deadlines are maintained and your costs are 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 value of the products and they are subject to vat rules that form part of the Vat Act of 1994. The amount of customs duty to be paid is known as the ?ad valorem duty? and then there are 6 methods that can be used to arrive at the amount of this duty. You will need to provide documentary proof to hmrc vat department as to why you have chosen a particular way of the valuation of the products which you have imported into the UK.
In case you have imported goods into 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 United Kingdom you’ll be able to apply for vat reclaim to get the previous amount back to your account. You will need to https://vatcheck.com/vat mention your vat number and provide your vat certificate to the country of origin when you file for a vat refund. Although refund process could take between four to eight months to materialize, your costs will certainly get lowered. You should employ the expertise 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 many successful vat refunds.
Once you’ve paid vat customs on the goods and begin selling precisely the same under vat invoices then you’ll need to maintain detailed accounts of the amount of vat paid and collected built in. You’ll have to mention these vat amounts in your vat returns which will have to be filed regularly based on the vat scheme that you have chosen. Remember that that any genuine mistake by you while importing goods into the UK ought to be rectified as quickly 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 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 into the UK then you’ll surely have to pay all applicable customs duties on the same. However, you may also claim back 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 whilst helping smooth entry of imported goods into the UK.