Operating a business in Britain that needs importing goods is usually stressful unless you know about vat customs rules imposed by the HM Revenue and Customs department. Learning about these rules may benefit your organization as you’re able ensure that your purchase and sales deadlines are maintained and your costs are kept to the minimum.
If 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 valuation of the goods and are subject to 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 you can use 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 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 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 same goods. If you’re a vat registered trader in the United Kingdom you’ll be able to apply for vat reclaim to get the previous 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 the refund process could take between four to 8 months to materialize, your costs will certainly get lowered. You ought to employ the services of a competent vat agent that charges fees only on the amount of refunds that you receive. This move will provide an incentive for your vat agent while rewarding you with many successful vat refunds.
Once you’ve paid vat customs on the goods and start selling the same under vat invoices then you will 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 which 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 as it could 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 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 must import goods into the UK then you’ll surely need to pay all applicable customs duties on the very same. However, you can also reclaim vat amounts paid in the nation of origin on goods and even on services that have been utilized in that country. A competent 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.