Running a business in Britain that requires importing goods is usually stressful unless you know all about vat customs rules imposed from the HM Revenue and Customs vatcontrol.com/vat department. Learning all about these rules may benefit your organization as you're able make sure that your purchase and sales deadlines are maintained and your costs are kept to the minimum.
If you import taxable goods to the UK then you will be charged import vat or customs duties. These duties have to be paid on the value of the goods and they are governed by 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 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 to the UK.
If you have imported goods to the UK from a eu country that 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 United Kingdom then you can apply for vat reclaim so as to get the earlier amount back to your bank account. You will need to 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 could 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 receive. 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 your goods and begin 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 will have to mention these vat amounts in your vat returns that will have to be filed regularly based on the vat scheme which you have chosen. You should remember that any genuine mistake on your part while importing goods into the UK should 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 needs to import goods into the UK then you'll surely have to pay all applicable customs duties on the very same. However, you may also claim back 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 to get back all excess vat previously paid whilst helping smooth entry of imported goods into the UK.
