Operating a business in Britain that needs importing goods is usually stressful unless you know about vat customs rules imposed by the HM Revenue and Customs vatcontrol.com/vat department. Learning about these rules may benefit your organization as you’re able ensure that your purchase and sales deadlines are maintained as well as your costs are kept to the minimum.
In case you import taxable goods to 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. How much customs duty to be paid is known as the ?ad valorem duty? and there are 6 methods you can use 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 certain method for the valuation of the goods that you’ve imported into the UK.
If you have imported goods into 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 you’ll be able to apply for vat reclaim so as to get the earlier amount back into your 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 refund process could 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 amount of refunds that you get. This move will provide a reason for your vat agent while rewarding you with lots of successful vat refunds.
Once you’ve paid vat customs on the goods and begin selling the same under vat invoices then you’ll have to maintain detailed accounts of the amount of vat paid and collected built in. You will have to mention these vat amounts during your vat returns that will need to be filed regularly based on the vat scheme which you have chosen. You should remember that any genuine mistake on your part while importing goods into 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 should have complete knowledge on customs and excise rules as well as eu vat and uk vat rules to ensure that there are no 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 same. However, you may also reclaim vat amounts paid in the nation of origin on goods and also on services that have been utilised 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 while also helping smooth entry of imported goods to the UK.