Operating a business in the UK that requires importing goods is usually stressful unless you know all about vat customs rules imposed from 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 costs are kept to the minimum.
In case you import taxable goods to the UK you will then be charged import vat or customs duties. These duties need to be paid on the valuation of the goods and are subject to vat rules that form part of the Vat Act of 1994. How much customs duty to generally be paid is called the ?ad valorem duty? and there are 6 methods that can be used vatvalidation.com/vat to reach the amount of this duty. You will need to provide documentary proof to hmrc vat department as to the reasons you’ve chosen a particular way of 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 that has also collected vat tax from you prior to goods were dispatched to the UK then you have 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 so as to get the previous amount back to your bank account. You will have to mention your vat number and give your vat certificate to the country of origin whenever you file for a vat refund. Although the refund process might 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 volume of refunds that you get. This move will provide a reason for your vat agent while rewarding you with lots of successful vat refunds.
Once you’ve paid vat customs on your goods and begin selling precisely the same under vat invoices then you will need to maintain detailed accounts of the amount 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 that you have chosen. Remember that that any genuine mistake on your part while importing goods into the UK should 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 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 must import goods into the UK then you’ll surely have to pay all applicable customs duties on the very same. However, you may also claim back vat amounts paid in the nation of origin on goods and even on services that have been 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.