Operating a business in Britain that requires importing goods can be 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 make sure that your purchase and sales deadlines are maintained and your cost is kept to the minimum.In case you import taxable goods into the UK you will then be charged import vat or customs duties. These duties have to be paid on the value of vatcontrol.com/vat the goods and 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 that can be used to reach the amount of this duty. You will need to provide documentary proof to hmrc vat department as to the reasons you’ve chosen a certain method for the valuation of the products which you’ve imported into the UK.
In case you have imported goods to the UK originating from a eu country which has also collected vat tax from you before the goods were dispatched to the UK then you’ve effectively paid double tax on the very same goods. If you’re a vat registered trader in the UK you’ll be able to make an application for vat reclaim to get the previous amount back into your account. You will have to mention your vat number and provide your vat certificate to the country of origin when you file for a vat refund. Although refund process might take between four to 8 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 volume of refunds that you receive. This move will give you a reason to 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 have to maintain detailed accounts of the amount of vat paid and collected on them. You will have to mention these vat amounts during your vat returns that will need to be filed regularly in line with 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 since it may 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 along with eu vat and uk vat rules to ensure that there are no miscalculations while importing goods into the UK.
If you’re a vat registered trader in the United Kingdom that needs to import goods to the UK then you will surely have to pay all applicable customs duties on the very same. However, you may also claim back vat amounts paid in the country of origin on goods and also on services that have been utilized in that country. A reliable vat agent can help you decipher vat customs rules and help you to get back all excess vat previously paid whilst helping smooth entry of imported goods into the UK.