Operating a business in the UK that requires importing goods can be stressful unless you know about vat customs rules imposed by the HM Revenue and Customs department. Learning about these rules may benefit your business as you can ensure that your purchase and sales deadlines are maintained as well as your cost is kept to the minimum.
If you import taxable goods to the UK you will then be charged import vat or customs duties. These duties have to be paid on the value of the products and they are subject to vat rules that form part of the Vat Act of 1994. How much customs duty to be paid is known as the ?ad valorem duty? and then 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 vatcheck.com a certain way of the valuation on the products which you’ve imported to the UK.
In case you have imported goods into the UK from a eu country which 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 same goods. If you are a vat registered trader in the UK you’ll be able to make an application for vat reclaim to get the previous amount back to your account. You will need 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 might take between four to eight months to materialize, your costs will definitely 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 level of vat paid and collected on them. You’ll have to mention these vat amounts in your vat returns which will have to be filed regularly based on the vat scheme which you have chosen. You should remember that any genuine mistake by you 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 should 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 United Kingdom that must import goods into the UK then you will 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 utilised in that country. A reliable 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 to the UK.