Operating a business in the UK that needs importing goods can be stressful unless you know about vat customs rules imposed from the HM Revenue and Customs department. Learning all about these rules may benefit your organization as you can ensure that your purchase and sales deadlines are maintained as well as your costs are kept to the minimum.
In case 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 products 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 there are 6 methods you can use to arrive at the amount of this duty. You will need to provide documentary proof to hmrc vat department as to why you’ve chosen a particular method for the valuation of the products which you have imported to 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 tax on the same goods. If you are a vat registered trader in the UK then you can apply for vat reclaim so as to get the previous amount back to your account. You will need to www.vatcheck.com/vat mention your vat number and give your vat certificate to the country of origin whenever you apply for a vat refund. Although the refund process might take between four to 8 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 get. This move will give you 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 begin selling the same under vat invoices then you will need to maintain detailed accounts of the level of vat paid and collected built in. You’ll 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. Remember that that any genuine mistake by you while importing goods to the UK should be rectified as quickly 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 to ensure 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 to the UK then you’ll surely need to pay all applicable customs duties on the same. However, you may also reclaim vat amounts paid in the nation of origin on goods and even on services that have been utilised in that country. A reliable vat agent will 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 to the UK.