Operating a business in the UK that needs importing goods is usually stressful unless you know about vat customs rules imposed by the HM Revenue and Customs department. Learning all about these rules may benefit your organization as you can ensure that your purchase and sales deadlines are maintained as well as 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 have to be paid on the valuation of http://vatcontrol.com/vat 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 then 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 the reasons you have chosen a certain method for the valuation on the goods that you have imported into 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 very same goods. If you are 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 account. You will have to mention your vat number and provide your vat certificate to the country of origin whenever you apply for a vat refund. Although refund process could take between four to eight months to materialize, your costs will definitely 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 give you 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 begin selling the same under vat invoices then you will need 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 based on the vat scheme which you have chosen. You should remember that any genuine mistake by you while importing goods into 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 to ensure that there are no miscalculations while importing goods to the UK.
If you are a vat registered trader in the United Kingdom that must import goods to the UK then you’ll surely need 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 even on services that have been 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 to the UK.