Running a business in the UK that requires importing goods is usually stressful unless you know all about vat customs rules imposed by the HM Revenue and Customs http://vatcontrol.com/vat 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.
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 products and they are governed by 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 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 particular way of the valuation on the goods that you have imported into the UK.
If you have imported goods into the UK originating from a eu country which has also collected vat tax from you prior to goods were dispatched to the UK then you’ve effectively paid double the amount tax on the very same goods. If you are a vat registered trader in the United Kingdom then you can 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 when you apply for a vat refund. Although refund process could take between four to eight months to materialize, your costs will certainly get lowered. You ought to employ the expertise of a competent vat agent that charges fees only on the amount of refunds that you receive. This move will provide an incentive to your vat agent while rewarding you with lots of successful vat refunds.
Once you have paid vat customs on the goods and start selling precisely the same under vat invoices then you’ll have to maintain detailed accounts of the level 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 that you have chosen. You should remember that any genuine mistake by you while importing goods into the UK should be rectified as soon 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 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 UK that needs to import goods into the UK then you’ll surely have to pay all applicable customs duties on the very same. However, you may also claim back vat amounts paid in the country of origin on goods and even on services that were 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 while also helping smooth entry of imported goods to the UK.