Running a business in the UK that needs importing goods is usually stressful unless you know all about vat customs rules imposed from the HM Revenue and Customs department. Learning about these rules may benefit your organization as you’re able ensure that your purchase and sales deadlines are maintained as well as your cost is kept to the minimum.
In case you import taxable goods into the UK then you will 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 be paid is known as the ?ad valorem duty? and there are 6 methods you can use to reach the amount of this duty. You will need to provide documentary proof to hmrc vat department as to the reasons you have chosen a particular method for the valuation on the goods that you’ve imported into the UK.
If you have imported goods to the UK from a eu country that has also collected vat tax from you before the goods were dispatched to the UK then you have effectively paid double the amount tax on the very same goods. If you’re a vat registered trader in the United Kingdom you’ll be able to make an application for vat reclaim to get the previous amount back into your account. You will need to www.vatcheck.com/vat mention your vat number and give your vat certificate to the country of origin whenever you apply for a vat refund. Although the refund process might take between four to 8 months to materialize, your costs will certainly get lowered. You should employ the services of a competent vat agent that charges fees only on the volume of refunds that you get. This move will provide an incentive for your vat agent while rewarding you with lots of successful vat refunds.
Once you’ve paid vat customs on the goods and begin selling the same under vat invoices then you’ll need to maintain detailed accounts of the level of vat paid and collected on them. You will have to mention these vat amounts in your vat returns that will need 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 to the UK should 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 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 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 may also reclaim vat amounts paid in the country 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 get back all excess vat previously paid whilst helping smooth entry of imported goods into the UK.