Operating a business in Britain that requires importing goods can be stressful unless you know about vat customs rules imposed from the HM Revenue and Customs https://vatcontrol.com/vat department. Learning about these rules can benefit your business as you’re able ensure that your purchase and sales deadlines are maintained and 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 valuation of the products and they are governed by 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 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 the reasons you have chosen a particular way of the valuation of the products which you have imported to the UK.
If you have imported goods to 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’ve effectively paid double tax on the very 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 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 refund process could take between four to 8 months to materialize, your costs will certainly get lowered. You ought to employ the services of a competent vat agent that charges fees only on the volume of refunds that you get. 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 start selling precisely the same under vat invoices then you’ll have to maintain detailed accounts of the amount of vat paid and collected on them. You will have to mention these vat amounts during your vat returns which will need to be filed regularly based on the vat scheme that you have chosen. You should remember that any genuine mistake by you while importing goods into the UK should 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 must have complete knowledge on customs and excise rules as well as eu vat and uk vat rules to ensure that there aren’t any miscalculations while importing goods into the UK.
If you’re a vat registered trader in the UK that must import goods to 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 even on services that have been 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.