Running a business in Britain that needs importing goods can be stressful unless you know about vat customs rules imposed from the HM Revenue and Customs department. Learning all about these rules can benefit your business as you can ensure that your purchase and sales deadlines are maintained and your cost is kept to the minimum.In case you import taxable goods into the UK then you will be charged import vat or customs duties. These duties need to be paid on the valuation of vatcontrol.com/vat the goods and they 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 then 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 the reasons you have chosen a certain way of the valuation of the goods that you’ve imported to the UK.
In case 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’re a vat registered trader in the UK then you can make an application for vat reclaim so as to get the earlier amount back to your account. You will need to mention your vat number and give your vat certificate to the country of origin when you apply for a vat refund. Although the refund process might take between four to 8 months to materialize, your costs will definitely get lowered. You should employ the expertise of a capable vat agent that charges fees only on the amount of refunds that you get. This move will give you a reason for your vat agent while rewarding you with many 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 level of vat paid and collected on them. You will have to mention these vat amounts in your vat returns which will need to be filed regularly in line with the vat scheme that you have chosen. You should remember that any genuine mistake on your part while importing goods to the UK ought to be rectified as soon as possible as it could 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 along with eu vat and uk vat rules so 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 will surely have to pay all applicable customs duties on the same. However, you may 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 competent vat agent can 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.