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 about these rules can benefit your business as you can 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 have to be paid on the valuation of the goods and they 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 there are 6 methods that can be used www.vatvalidation.com/vat 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 particular way of the valuation of the products which you've 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 the amount tax on the same goods. If you're a vat registered trader in the UK then you can apply for vat reclaim to get the earlier amount back to your bank 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 certainly 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 provide a reason for 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 need to maintain detailed accounts of the amount of vat paid and collected on them. You will have to mention these vat amounts during your vat returns which will need to be filed regularly based on 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 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 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 will surely have to pay all applicable customs duties on the 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 to the UK.