Running a business in the UK that needs importing goods is usually stressful unless you know all about vat customs rules imposed by the HM Revenue and Customs department. Learning about these rules can benefit your organization as you can ensure that your purchase and sales deadlines are maintained as well as 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 valuation of http://vatcontrol.com/vat the goods and are subject to 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 reach the amount of this duty. You will have to provide documentary proof to hmrc vat department as to why you have chosen a certain method for the valuation on the goods that you've imported into the UK.
If you have imported goods to 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 are a vat registered trader in the UK then you can make an application for vat reclaim so as to get the previous amount back to your account. You will have to mention your vat number and give your vat certificate to the country of origin when you file for a vat refund. Although refund process might take between four to eight months to materialize, your costs will definitely get lowered. You should employ the expertise of a capable vat agent that charges fees only on the amount of refunds that you get. This move will give you a reason to your vat agent while rewarding you with many successful vat refunds.
Once you've paid vat customs on the goods and start selling precisely the same under vat invoices then you'll 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 which will have to be filed regularly based on the vat scheme that you have chosen. You should remember that any genuine mistake on your part 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 should have complete knowledge on customs and excise rules as well as eu vat and uk vat rules to ensure that there are no miscalculations while importing goods into the UK.
If you are a vat registered trader in the United Kingdom that needs to import goods into the UK then you will surely have to pay all applicable customs duties on the very same. However, you may also reclaim vat amounts paid in the country of origin on goods and also on services that were utilized in that country. A reliable vat agent will help you decipher vat customs rules and help you get back all excess vat previously paid while also helping smooth entry of imported goods to the UK.
