Running a business in Britain 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’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 you will then be charged import vat or customs duties. These duties need to be paid on the valuation of the goods and they are governed by vat rules that form part of the Vat Act of 1994. The amount of customs duty to be paid is called the ?ad valorem duty? and there are 6 methods that can be used vatregistrationnumber to reach the amount of this duty. You will have to provide documentary proof to hmrc vat department as to why you’ve chosen a certain way of the valuation of the goods that you have imported to the UK.
If you have imported goods into the UK from a eu country which has also collected vat tax from you before the goods were dispatched to the UK then you have effectively paid double the amount tax on the same goods. If you are a vat registered trader in the United Kingdom you’ll be able to apply for vat reclaim so as to get the previous amount back to your bank account. You will have to mention your vat number and give your vat certificate to the country of origin whenever you apply for a vat refund. Although the refund process could take between four to 8 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 give you an incentive for your vat agent while rewarding you with lots of successful vat refunds.
Once you have paid vat customs on the goods and start selling the same under vat invoices then you’ll need to maintain detailed accounts of the level of vat paid and collected on them. You’ll have to mention these vat amounts during your vat returns that will have to be filed regularly in line with the vat scheme that you have chosen. Remember that that any genuine mistake on your part while importing goods into the UK should 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 must have complete knowledge on customs and excise rules as well as eu vat and uk vat rules so that there aren’t any miscalculations while importing goods into the UK.
If you are a vat registered trader in the United Kingdom that must import goods to the UK then you’ll surely have 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 have been 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.