Running a business in the UK that requires importing goods can be stressful unless you know about vat customs rules imposed from the HM Revenue and Customs department. Learning about these rules can benefit your organization as you can ensure that your purchase and sales deadlines are maintained and your costs are 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 valuation of the products and are governed by vat rules that form part of the Vat Act of 1994. How much customs duty to generally be paid is known as the ?ad valorem duty? and there are 6 methods you can use vatregistrationnumber to arrive at the amount of this duty. You will have to provide documentary proof to hmrc vat department as to why you have chosen a particular way of the valuation on the products which you have imported to the UK.
If 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 the amount tax on the very same goods. If you are a vat registered trader in the United Kingdom you’ll be able to make an application for vat reclaim to get the earlier amount back to your bank account. You will need to mention your vat number and give your vat certificate to the country of origin whenever you file for a vat refund. Although refund process could take between four to 8 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 amount of refunds that you get. This move will provide a reason 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 amount of vat paid and collected on them. You will have to mention these vat amounts during your vat returns which will need to be filed regularly based on the vat scheme which you have chosen. Remember that that any genuine mistake by you while importing goods into the UK ought to be rectified as quickly as possible as 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 to ensure that there aren’t any miscalculations while importing goods into the UK.
If you’re a vat registered trader in the United Kingdom that needs to import goods into the UK then you will surely have to pay all applicable customs duties on the very same. However, you can also reclaim vat amounts paid in the nation 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 while also helping smooth entry of imported goods into the UK.