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 vatcontrol.com/vat department. Learning all about these rules can benefit your business as you’re able make sure that your purchase and sales deadlines are maintained and your costs are kept to the minimum.
In case you import taxable goods to the UK then you will be charged import vat or customs duties. These duties need to be paid on the valuation of the goods and they are subject to vat rules that form part of the Vat Act of 1994. How much customs duty to generally be paid is called 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’ve chosen a particular way of the valuation of the products which you have imported into the UK.
If 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 same goods. If you’re a vat registered trader in the UK then you can apply for vat reclaim so as to get the earlier amount back into your bank account. You will have to mention your vat number and provide your vat certificate to the country of origin whenever you apply for a vat refund. Although refund process might take between four to eight months to materialize, your costs will definitely get lowered. You should employ the expertise of a competent vat agent that charges fees only on the amount of refunds that you receive. This move will give you a reason for your vat agent while rewarding you with many 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 built in. You will have to mention these vat amounts during your vat returns that will need 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 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 so that there aren’t any 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 will surely have to pay all applicable customs duties on the very 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 get back all excess vat previously paid while also helping smooth entry of imported goods into the UK.