Running a business in Britain that requires importing goods is usually stressful unless you know about vat customs rules imposed from the HM Revenue and Customs https://vatcontrol.com/vat department. Learning about these rules can benefit your organization 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 to the UK you will then be charged import vat or customs duties. These duties have to be paid on the value of the products 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 known as the ?ad valorem duty? and then there are 6 methods you can use to reach the amount of this duty. You will need to provide documentary proof to hmrc vat department as to the reasons you have chosen a certain method for the valuation of the products which you have imported to the UK.
In case you have imported goods into 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 have effectively paid double tax on the 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 into your account. You will need to mention your vat number and provide your vat certificate to the country of origin when you apply for a vat refund. Although the refund process might take between four to eight months to materialize, your costs will certainly get lowered. You should employ the services of a competent vat agent that charges fees only on the volume of refunds that you get. This move will give you a reason 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 will need to maintain detailed accounts of the level of vat paid and collected built in. You’ll have to mention these vat amounts during your vat returns that will need to be filed regularly in line with the vat scheme which you have chosen. You should remember that any genuine mistake by you while importing goods to the UK ought to be rectified as quickly 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 as well as eu vat and uk vat rules so that there aren’t any 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’ll surely need to pay all applicable customs duties on the very same. However, you can also claim back vat amounts paid in the country of origin on goods and also on services that were utilised in that country. A competent vat agent can help you decipher vat customs rules and help you get back all excess vat previously paid while also helping smooth entry of imported goods to the UK.