Operating a business in the UK that requires 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 may benefit your business as you’re able ensure that your purchase and sales deadlines are maintained as well as 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 have to be paid on the valuation of https://vatcontrol.com/vat the goods and are subject to vat rules that form part of the Vat Act of 1994. How much customs duty to be paid is called the ?ad valorem duty? and then 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 why you’ve chosen a particular method for the valuation on the products which you have imported into the UK.
In case 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 very same goods. If you’re a vat registered trader in the United Kingdom you’ll be able to make an application for vat reclaim so as to get the earlier amount back to your account. You will need to mention your vat number and provide your vat certificate to the country of origin whenever you file for a vat refund. Although the refund process might take between four to 8 months to materialize, your costs will definitely get lowered. You ought to employ the expertise of a capable 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 many successful vat refunds.
Once you’ve paid vat customs on the goods and begin selling precisely the same under vat invoices then you will need to maintain detailed accounts of the level of vat paid and collected on them. You will have to mention these vat amounts in 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 on your part while importing goods to the UK should be rectified as quickly 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 must 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 UK that must import goods to the UK then you will surely need to pay all applicable customs duties on the very 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 to get back all excess vat previously paid whilst helping smooth entry of imported goods into the UK.