Running a business in Britain that needs 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 can make sure that your purchase and sales deadlines are maintained as well as your costs are kept to the minimum.
If you import taxable goods to 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. The amount of 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 the reasons you have chosen a certain method for the valuation of the goods that you have 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 before the goods were dispatched to the UK then you’ve effectively paid double tax on the same goods. If you are a vat registered trader in the United Kingdom then you can make an application for vat reclaim to get the earlier amount back into your bank account. You will have to http://vatcheck.com/vat mention your vat number and provide your vat certificate to the country of origin when you apply for a vat refund. Although refund process might 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 receive. This move will give you an incentive for your vat agent while rewarding you with many successful vat refunds.
Once you have paid vat customs on your 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’ll have to mention these vat amounts during your vat returns which will have 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 soon 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’re a vat registered trader in the United Kingdom that needs to import goods into the UK then you will surely need to pay all applicable customs duties on the same. However, you can also reclaim 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 to get back all excess vat previously paid while also helping smooth entry of imported goods into the UK.