Running 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 http://vatcontrol.com/vat department. Learning about these rules may benefit your organization as you can make sure that your purchase and sales deadlines are maintained as well as your costs are kept to the minimum.
In case 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 the products and they 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 reach the amount of this duty. You will have to provide documentary proof to hmrc vat department as to why you have chosen a particular method for the valuation of the goods that you've imported to the UK.
In case you have imported goods to the UK originating from a eu country which has also collected vat tax from you prior to goods were dispatched to the UK then you've effectively paid double tax on the same goods. If you are a vat registered trader in the UK then you can apply for vat reclaim to get the earlier amount back to your account. You will need to mention your vat number and provide your vat certificate to the country of origin when you apply for a vat refund. Although the refund process could take between four to eight months to materialize, your costs will certainly get lowered. You should employ the services of a capable vat agent that charges fees only on the volume of refunds that you receive. This move will provide an incentive to your vat agent while rewarding you with many successful vat refunds.
Once you have paid vat customs on your goods and start 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'll have to mention these vat amounts during your vat returns that will need 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 to the UK ought to be rectified as soon as possible as it could 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 as well as eu vat and uk vat rules to ensure that there are no miscalculations while importing goods into the UK.
If you're a vat registered trader in the United Kingdom that must import goods to the UK then you'll surely have to pay all applicable customs duties on the very same. However, you can also claim back vat amounts paid in the nation of origin on goods and even on services that were utilized in that country. A competent 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.