Running a business in the UK that requires importing goods can be stressful unless you know all about vat customs rules imposed from the HM Revenue and Customs department. Learning about these rules may benefit your business as you’re able make sure that your purchase and sales deadlines are maintained and your costs are kept to the minimum.
If you import taxable goods into the UK you will then be charged import vat or customs duties. These duties need to be paid on the value of the goods and are governed by vat rules that form part of the Vat Act of 1994. How much customs duty to generally be paid is known as the ?ad valorem duty? and then 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 why you have chosen https://vatcheck.com a certain method for the valuation on the goods that you have imported into the UK.
In case you have imported goods to the UK from a eu country that has also collected vat tax from you before the 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 you’ll be able to make an application for vat reclaim so as to get the previous amount back into your bank account. You will have to mention your vat number and provide your vat certificate to the country of origin whenever you file for a vat refund. Although the refund process might take between four to eight months to materialize, your costs will definitely get lowered. You ought to employ the services of a capable vat agent that charges fees only on the volume of refunds that you get. This move will provide a reason for your vat agent while rewarding you with many successful vat refunds.
Once you have paid vat customs on the goods and begin 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 in your vat returns that will have 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 into the UK ought to 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 to ensure that there aren’t any miscalculations while importing goods to the UK.
If you’re 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 can also claim back vat amounts paid in the nation of origin on goods and even on services that were utilised 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.