Running a business in Britain that requires importing goods is usually stressful unless you know all about vat customs rules imposed by the HM Revenue and Customs department. Learning all about these rules can benefit your organization as you're able make sure that your purchase and sales deadlines are maintained as well as your cost is kept to the minimum.
In case you import taxable goods into the UK you will then be charged import vat or customs duties. These duties need to be paid on the value 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 be paid is called 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 the reasons you've chosen a particular way of the valuation of the products which you've imported to the UK.
If you have imported goods into the UK originating 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 tax on the very same goods. If you're a vat registered trader in the UK you'll be able to make an application for vat reclaim to get the previous amount back to your account. You will need to vatcheck.com/vat mention your vat number and give your vat certificate to the country of origin whenever you apply 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 volume 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 the same under vat invoices then you'll have to maintain detailed accounts of the level of vat paid and collected on them. You will have to mention these vat amounts in your vat returns which will need to be filed regularly based on the vat scheme that you have chosen. You should remember that any genuine mistake by you while importing goods to the UK ought to be rectified as soon as possible since it could 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 so that there aren't any miscalculations while importing goods to the UK.
If you're a vat registered trader in the UK 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 nation of origin on goods and even on services that have been utilised 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 into the UK.