Running a business in Britain that requires importing goods is usually stressful unless you know all about vat customs rules imposed from the HM Revenue and Customs department. Learning all about these rules may benefit your organization as you’re able make sure 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 then you will be charged import vat or customs duties. These duties need to be paid on the value of the products 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 need to provide documentary proof to hmrc vat department as to why you’ve chosen a particular method for the valuation of the goods that you have imported to the UK.
If you have imported goods to the UK 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 very same goods. If you are a vat registered trader in the UK you’ll be able to apply for vat reclaim to get the previous amount back into your bank account. You will have to www.vatcheck.com/vat mention your vat number and give your vat certificate to the country of origin when you file for a vat refund. Although the refund process could take between four to eight months to materialize, your costs will definitely 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 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 precisely the same under vat invoices then you will have to maintain detailed accounts of the level of vat paid and collected built in. You will have to mention these vat amounts in 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 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 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 are a vat registered trader in the United Kingdom that needs to import goods into the UK then you’ll surely need to pay all applicable customs duties on the same. However, you may also reclaim vat amounts paid in the country of origin on goods and even on services that have been utilised in that country. A competent vat agent will help you decipher vat customs rules and help you get back all excess vat previously paid while also helping smooth entry of imported goods into the UK.