Operating a business in the UK that needs importing goods is usually 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 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 valuation of vatcontrol.com/vat the products and they are governed by 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 there are 6 methods you can use to arrive at the amount of this duty. You will have to provide documentary proof to hmrc vat department as to the reasons you have chosen a certain way of the valuation on the products which you’ve imported into the UK.
In case you have imported goods into the UK from a eu country that 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 very same goods. If you’re 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 give your vat certificate to the country of origin whenever you file 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 expertise of a competent vat agent that charges fees only on the amount of refunds that you get. This move will provide an incentive to your vat agent while rewarding you with lots of successful vat refunds.
Once you’ve paid vat customs on the goods and begin 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’ll have to mention these vat amounts during your vat returns that will have to be filed regularly based on the vat scheme that you have chosen. You should remember that any genuine mistake on your part while importing goods to the UK ought to be rectified as soon as possible as it may 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 to the UK.
If you’re a vat registered trader in the UK that needs to import goods into the UK then you will surely have to pay all applicable customs duties on the same. However, you may also claim back vat amounts paid in the country of origin on goods and also on services that have been utilised in that country. A competent vat agent can 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.