Running a business in the UK that needs importing goods is usually stressful unless you know about vat customs rules imposed by the HM Revenue and Customs department. Learning all about these rules can benefit your organization as you’re able make sure that your purchase and sales deadlines are maintained as well as your costs are 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 value of https://vatcontrol.com/vat the products and are subject to vat rules that form part of the Vat Act of 1994. How much customs duty to be paid is known as 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 have chosen a certain method for the valuation on the products which you’ve imported to the UK.
In case you have imported goods into the UK from a eu country that has also collected vat tax from you prior to goods were dispatched to the UK then you have effectively paid double tax on the very 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 to your bank account. You will need to mention your vat number and give 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 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 give you 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 level of vat paid and collected on them. You’ll have to mention these vat amounts during your vat returns which will need to be filed regularly based on the vat scheme which you have chosen. You should remember that any genuine mistake by you while importing goods to the UK ought to be rectified as soon 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 as well as eu vat and uk vat rules so 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 will surely need to pay all applicable customs duties on the same. However, you can also claim back vat amounts paid in the country of origin on goods and also on services that were utilised 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 to the UK.