Operating a business in Britain 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 organization as you can ensure that your purchase and sales deadlines are maintained and your costs are kept to the minimum.
In case you import taxable goods to the UK then you will be charged import vat or customs duties. These duties need to be paid on the valuation of the products and they are subject to 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 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 have chosen a particular method for the valuation of the goods that you've imported to the UK.
If you have imported goods into the UK from a eu country which has also collected vat tax from you before the 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 so as to get the earlier amount back to your bank account. You will have to http://vatcheck.com/vat mention your vat number and provide 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 definitely get lowered. You ought to employ the expertise of a competent vat agent that charges fees only on the amount of refunds that you get. This move will provide a reason to your vat agent while rewarding you with lots of successful vat refunds.
Once you have paid vat customs on your goods and start selling precisely the same under vat invoices then you will have to maintain detailed accounts of the level 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 that you have chosen. Remember that that any genuine mistake on your part while importing goods to 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 must have complete knowledge on customs and excise rules along with eu vat and uk vat rules so that there are no 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 will surely need to pay all applicable customs duties on the same. However, you can also reclaim vat amounts paid in the nation of origin on goods and also on services that have been utilised 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 into the UK.
