Operating a business in Britain that needs importing goods is usually stressful unless you know all about vat customs rules imposed by the HM Revenue and Customs department. Learning all about these rules may benefit your business as you’re able make sure that your purchase and sales deadlines are maintained as well as 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 need to be paid on the value of the goods 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 called 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 on the goods that you’ve imported into the UK.
In case 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 have effectively paid double the amount tax on the same goods. If you’re a vat registered trader in the UK then you can apply for vat reclaim to get the previous amount back into your account. You will have to https://vatcheck.com/vat mention your vat number and provide your vat certificate to the country of origin when you apply for a vat refund. Although refund process could take between four to eight months to materialize, your costs will certainly get lowered. You ought to employ the services of a capable vat agent that charges fees only on the volume of refunds that you receive. This move will give you an incentive for your vat agent while rewarding you with lots of successful vat refunds.
Once you have paid vat customs on your goods and start selling precisely the same under vat invoices then you will have to maintain detailed accounts of the amount 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 that you have chosen. Remember that that any genuine mistake by you 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 should 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’re a vat registered trader in the United Kingdom that must import goods into the UK then you’ll surely have 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 reliable vat agent will help you decipher vat customs rules and help you get back all excess vat previously paid whilst helping smooth entry of imported goods to the UK.