Operating a business in Britain that needs 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 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 to the UK then you will be charged import vat or customs duties. These duties have to be paid on the valuation of the goods and they are subject to vat rules that form part of the Vat Act of 1994. The amount of 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 have to provide documentary proof to hmrc vat department as to why you’ve chosen https://vatcheck.com a certain 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 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 to your bank account. You will have 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 eight months to materialize, your costs will certainly get lowered. You ought to employ the expertise of a capable vat agent that charges fees only on the volume of refunds that you get. This move will provide an incentive for your vat agent while rewarding you with lots of successful vat refunds.
Once you’ve paid vat customs on your goods and start selling precisely the same under vat invoices then you’ll need to maintain detailed accounts of the amount of vat paid and collected on them. You will have to mention these vat amounts in your vat returns which will have 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 into the UK ought to be rectified as quickly as possible since 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 along with 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 needs to import goods to the UK then you will surely need to pay all applicable customs duties on the very same. However, you may also reclaim vat amounts paid in the country of origin on goods and also on services that were utilized in that country. A competent 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 into the UK.