Running a business in the UK that requires importing goods can be 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 can ensure that your purchase and sales deadlines are maintained as well as your cost is kept to the minimum.
If 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 governed by 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 then there www.vatvalidation.com/vat are 6 methods that can be used to reach the amount of this duty. You will need to provide documentary proof to hmrc vat department as to why you’ve chosen a certain way of the valuation on the goods that you’ve imported into the UK.
In case you have imported goods into the UK from a eu country which has also collected vat tax from you prior to goods were dispatched to the UK then you have effectively paid double the amount tax on the same goods. If you are a vat registered trader in the United Kingdom you’ll be able to apply for vat reclaim to get the previous amount back to your account. You will need to mention your vat number and give your vat certificate to the country of origin when you file for a vat refund. Although the refund process might take between four to 8 months to materialize, your costs will definitely get lowered. You ought to employ the expertise of a competent vat agent that charges fees only on the amount of refunds that you receive. This move will give you an incentive 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’ll 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 which will have to be filed regularly based on the vat scheme which you have chosen. Remember that that any genuine mistake by you while importing goods to 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 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 into the UK.
If you are a vat registered trader in the UK that must import goods to the UK then you’ll surely have to pay all applicable customs duties on the same. However, you can also reclaim vat amounts paid in the nation of origin on goods and also on services that were utilised in that country. A competent vat agent will help you decipher vat customs rules and help you get back all excess vat previously paid whilst helping smooth entry of imported goods into the UK.