Running a business in Britain that requires importing goods can be stressful unless you know all about vat customs rules imposed by the HM Revenue and Customs department. Learning all about these rules can benefit your organization as you can 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 then you will be charged import vat or customs duties. These duties have to be paid on the value of the products and are governed by vat rules that form part of the Vat Act of 1994. The amount of customs duty to be paid is called the ?ad valorem duty? and then there are 6 methods you can use vat registration number to arrive at the amount of this duty. You will need to provide documentary proof to hmrc vat department as to why you have chosen 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 originating 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 very same goods. If you are a vat registered trader in the UK then you can apply for vat reclaim to get the previous amount back to your account. You will have 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 might take between four to eight months to materialize, your costs will certainly get lowered. You ought to employ the services 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 many successful vat refunds.
Once you have paid vat customs on the goods and begin selling precisely the same under vat invoices then you’ll 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 that will have to be filed regularly in line with the vat scheme that you have chosen. Remember that that any genuine mistake on your part while importing goods into the UK should 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 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 to the UK.
If you’re 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 may also reclaim vat amounts paid in the country of origin on goods and also on services that have been utilised in that country. A reliable vat agent will 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.