Operating a business in Britain that needs importing goods can be stressful unless you know 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 and 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 need to be paid on the value of the goods and they are governed by vat rules that form part of the Vat Act of 1994. How much customs duty to be paid is called the ?ad valorem duty? and then there are 6 methods that can be used http://vatregistrationnumber.com to reach the amount of this duty. You will need to provide documentary proof to hmrc vat department as to why you’ve chosen a certain way of the valuation of the products which you’ve imported into the UK.
In case you have imported goods into 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 very same goods. If you’re a vat registered trader in the UK then you can apply for vat reclaim to get the earlier amount back into your bank account. You will need to mention your vat number and provide your vat certificate to the country of origin whenever you apply for a vat refund. Although the refund process might take between four to eight months to materialize, your costs will certainly get lowered. You should employ the expertise of a capable vat agent that charges fees only on the amount of refunds that you receive. This move will provide a reason to your vat agent while rewarding you with many successful vat refunds.
Once you have paid vat customs on your goods and start selling the same under vat invoices then you will have to maintain detailed accounts of the amount of vat paid and collected built in. You will have to mention these vat amounts during your vat returns that will have to be filed regularly in line with 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 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 along with eu vat and uk vat rules to ensure that there are no miscalculations while importing goods into the UK.
If you are a vat registered trader in the UK that must import goods to the UK then you’ll surely have to pay all applicable customs duties on the same. However, you can also claim back vat amounts paid in the nation of origin on goods and also on services that were utilised in that country. A competent vat agent will help you decipher vat customs rules and help you to get back all excess vat previously paid while also helping smooth entry of imported goods into the UK.