Running a business in the UK that needs importing goods can be stressful unless you know about vat customs rules imposed by the HM Revenue and Customs department. Learning about these rules can benefit your organization as you can make sure 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 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 be paid is known as the ?ad valorem duty? and there are 6 methods that can be used http://vatvalidation.com/vat to reach the amount of this duty. You will have to provide documentary proof to hmrc vat department as to the reasons you've chosen a particular way of the valuation of the goods that you've imported into the UK.
If you have imported goods to 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 the amount tax on the very same goods. If you are a vat registered trader in the UK you'll be able to make an application for vat reclaim so as to get the earlier amount back into your bank 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 might take between four to 8 months to materialize, your costs will definitely get lowered. You ought to employ the expertise of a capable vat agent that charges fees only on the volume 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'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 which will need to be filed regularly in line with the vat scheme that you have chosen. Remember that that any genuine mistake by you while importing goods to 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 along with 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 to the UK then you'll surely have to pay all applicable customs duties on the same. However, you may also reclaim vat amounts paid in the country of origin on goods and also on services that were utilised in that country. A reliable vat agent can 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.
