Operating a business in Britain that requires importing goods is usually stressful unless you know all about vat customs rules imposed from the HM Revenue and Customs https://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.
If you import taxable goods into the UK you will then be charged import vat or customs duties. These duties need to be paid on the valuation of the goods and are subject to vat rules that form part of the Vat Act of 1994. The amount of 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 have to provide documentary proof to hmrc vat department as to the reasons you have chosen a particular way of the valuation of the products which you have imported to the UK.
If you have imported goods to 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 have effectively paid double the amount tax on the same goods. If you are a vat registered trader in the United Kingdom then you can apply for vat reclaim so as 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 whenever you apply for a vat refund. Although the refund process could 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 provide an incentive for your vat agent while rewarding you with lots of successful vat refunds.
Once you have paid vat customs on your goods and begin selling the same under vat invoices then you will need to maintain detailed accounts of the amount of vat paid and collected on them. You’ll have to mention these vat amounts during 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 into the UK ought to 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 should have complete knowledge on customs and excise rules as well as eu vat and uk vat rules so that there are no miscalculations while importing goods into the UK.
If you are a vat registered trader in the United Kingdom that must import goods to the UK then you will 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 even on services that have been utilized in that country. A competent 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 into the UK.