Running a business in the UK that requires importing goods can be stressful unless you know all about vat customs rules imposed by the HM Revenue and Customs department. Learning about these rules can benefit your business as you’re able make sure that your purchase and sales deadlines are maintained as well as your costs are 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 the products and they are subject to vat rules that form part of the Vat Act of 1994. The amount of customs duty to generally be paid is known as the ?ad valorem duty? and there are 6 methods that can be used to reach the amount of this duty. You will have to provide documentary proof to hmrc vat department as to why you have chosen a particular method for the valuation of the goods that you have imported to the UK.
If you have imported goods into 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 the amount tax on the very same goods. If you are a vat registered trader in the United Kingdom you’ll be able to apply for vat reclaim to get the previous amount back to your bank account. You will need to vatcheck.com/vat mention your vat number and give your vat certificate to the country of origin when you file for a vat refund. Although refund process could take between four to eight months to materialize, your costs will certainly 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 an incentive to your vat agent while rewarding you with lots of successful vat refunds.
Once you have paid vat customs on the goods and begin selling the same under vat invoices then you’ll have to maintain detailed accounts of the amount of vat paid and collected built in. You will have to mention these vat amounts during your vat returns which will need to be filed regularly in line with the vat scheme that you have chosen. You should remember that any genuine mistake by you while importing goods to the UK should be rectified as soon as possible since 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 as well as eu vat and uk vat rules to ensure that there aren’t any miscalculations while importing goods to the UK.
If you are a vat registered trader in the UK that must import goods into the UK then you will surely need to pay all applicable customs duties on the very same. However, you may also claim back vat amounts paid in the nation of origin on goods and also on services that were utilized in that country. A reliable 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.