Running a business in the UK 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 organization 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 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 then there are 6 methods that can be used to arrive at the amount of this duty. You will need to provide documentary proof to hmrc vat department as to why you’ve chosen vatcheck.com a particular way of the valuation on the goods that you have imported to the UK.
In case you have imported goods to the UK from a eu country which 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 United Kingdom then you can make an application for vat reclaim so as to get the previous amount back into your bank account. You will have to mention your vat number and give your vat certificate to the country of origin when you file for a vat refund. Although the refund process could take between four to 8 months to materialize, your costs will certainly get lowered. You ought to employ the services of a capable vat agent that charges fees only on the volume of refunds that you get. This move will provide a reason to your vat agent while rewarding you with many successful vat refunds.
Once you’ve paid vat customs on your goods and begin selling the same under vat invoices then you’ll have to maintain detailed accounts of the level of vat paid and collected built in. You’ll have to mention these vat amounts during your vat returns which 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 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 as well as eu vat and uk vat rules so that there aren’t any miscalculations while importing goods into the UK.
If you’re a vat registered trader in the United Kingdom that needs to import goods into the UK then you will surely have to pay all applicable customs duties on the very same. However, you may also reclaim vat amounts paid in the nation of origin on goods and also on services that were utilized 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.