Operating a business in Britain that requires importing goods is usually stressful unless you know all about vat customs rules imposed by the HM Revenue and Customs department. Learning about these rules can benefit your business as you can 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 valuation of the products and are governed by vat rules that form part of the Vat Act of 1994. The amount of customs duty to generally be paid is called the ?ad valorem duty? and then there are 6 methods you can use vat registration number 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 particular way of the valuation on the products which you have imported into the UK.
If you have imported goods to the UK originating from a eu country that has also collected vat tax from you prior to goods were dispatched to the UK then you’ve 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 to get the earlier amount back into your account. You will need to mention your vat number and provide your vat certificate to the country of origin when you file for a vat refund. Although refund process might take between four to eight 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 receive. This move will give you a reason to your vat agent while rewarding you with lots of successful vat refunds.
Once you have paid vat customs on the goods and begin selling the same under vat invoices then you’ll 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 which will need to be filed regularly based on the vat scheme which you have chosen. You should remember that any genuine mistake on your part while importing goods into the UK ought to be rectified as soon as possible since it may 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 so that there are no 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 have to pay all applicable customs duties on the very same. However, you may also claim back vat amounts paid in the country of origin on goods and even on services that were utilised in that country. A competent 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.