Operating a business in the UK that needs importing goods is usually stressful unless you know about vat customs rules imposed by the HM Revenue and Customs department. Learning all about these rules can benefit your business as you’re able ensure that your purchase and sales deadlines are maintained and your cost is kept to the minimum.If you import taxable goods into the UK then you will be charged import vat or customs duties. These duties have to be paid on the valuation of vatcontrol.com/vat the goods and are governed by vat rules that form part of the Vat Act of 1994. How much customs duty to be paid is known as the ?ad valorem duty? and there are 6 methods that can be used to reach 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 on the products which you’ve imported to the UK.
In case 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 have effectively paid double the amount tax on the very same goods. If you’re a vat registered trader in the United Kingdom you’ll be able to make an application for vat reclaim to get the earlier amount back to your bank account. You will have to mention your vat number and provide your vat certificate to the country of origin when you file for a vat refund. Although the refund process might take between four to eight months to materialize, your costs will certainly get lowered. You ought to employ the services of a capable vat agent that charges fees only on the amount of refunds that you receive. This move will give you a reason 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 precisely the same under vat invoices then you’ll have 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 that will need to be filed regularly in line with the vat scheme which you have chosen. Remember that that any genuine mistake on your part while importing goods into the UK ought to 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 should have complete knowledge on customs and excise rules as well as eu vat and uk vat rules to ensure that there aren’t any miscalculations while importing goods into the UK.
If you’re a vat registered trader in the UK that must 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 nation of origin on goods and even on services that have been utilized in that country. A reliable 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 into the UK.