Running a business in the UK that requires importing goods is usually stressful unless you know all about vat customs rules imposed from the HM Revenue and Customs department. Learning all about these rules can benefit your business as you’re able ensure that your purchase and sales deadlines are maintained as well as your cost is kept to the minimum.If you import taxable goods into the UK then you will be charged import vat or customs duties. These duties have to be paid on the valuation of vatcontrol.com/vat the goods and 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 reach the amount of this duty. You will have to provide documentary proof to hmrc vat department as to the reasons you’ve chosen a particular way of the valuation of the goods that 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 before the 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 UK you’ll be able to apply for vat reclaim to get the previous amount back to your bank account. You will need to mention your vat number and provide your vat certificate to the country of origin when you apply for a vat refund. Although the refund process could take between four to 8 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 amount of refunds that you get. This move will give you a reason for your vat agent while rewarding you with lots of successful vat refunds.
Once you’ve paid vat customs on your goods and begin selling precisely the same under vat invoices then you will need to maintain detailed accounts of the level of vat paid and collected built in. You will 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. Remember that that any genuine mistake on your part 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 to the UK.
If you are a vat registered trader in the UK that must import goods to the UK then you’ll surely need to pay all applicable customs duties on the very same. However, you can also reclaim vat amounts paid in the country of origin on goods and even on services that have been utilised in that country. A competent vat agent will help you decipher vat customs rules and help you get back all excess vat previously paid while also helping smooth entry of imported goods to the UK.