Operating a business in Britain that requires importing goods is usually stressful unless you know all about vat customs rules imposed by the HM Revenue and Customs department. Learning about these rules can benefit your business as you’re able ensure that your purchase and sales deadlines are maintained as well as your cost is 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 have to be paid on the value 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 generally be paid is called the ?ad valorem duty? and there are 6 methods that can be used http://vatregistrationnumber.com 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’ve imported to the UK.
In case you have imported goods into 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 tax on the very 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 to your bank account. You will need to mention your vat number and provide your vat certificate to the country of origin when 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 expertise of a competent vat agent that charges fees only on the amount of refunds that you receive. This move will give you a reason to 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 will need to maintain detailed accounts of the level of vat paid and collected on them. You’ll have to mention these vat amounts in your vat returns which will need to be filed regularly in line with the vat scheme which you have chosen. Remember that that any genuine mistake by you while importing goods to 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 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 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 need to pay all applicable customs duties on the very same. However, you can also reclaim vat amounts paid in the country of origin on goods and also on services that have been utilised 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 whilst helping smooth entry of imported goods into the UK.