Operating a business in the UK that needs importing goods can be 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 business as you’re able make sure that your purchase and sales deadlines are maintained and your costs are kept to the minimum.
If 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 value of the goods and they are governed by vat rules that form part of the Vat Act of 1994. How much customs duty to be paid is called the ?ad valorem duty? and then there are 6 methods you can use vatvalidation.com/vat to arrive at 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 on the goods that you have 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 the amount tax on the same goods. If you’re a vat registered trader in the United Kingdom you’ll be able to apply for vat reclaim so as to get the previous amount back into your account. You will have to mention your vat number and provide your vat certificate to the country of origin whenever you apply for a vat refund. Although the refund process might take between four to eight months to materialize, your costs will definitely get lowered. You should employ the expertise of a competent vat agent that charges fees only on the amount of refunds that you get. This move will give you an incentive to your vat agent while rewarding you with many successful vat refunds.
Once you’ve paid vat customs on your goods and begin selling precisely the same under vat invoices then you will have to maintain detailed accounts of the amount of vat paid and collected on them. You’ll have to mention these vat amounts in your vat returns which will have to be filed regularly based on the vat scheme that you have chosen. You should remember that any genuine mistake on your part while importing goods to the UK ought to 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 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 need to pay all applicable customs duties on the very same. However, you may also reclaim vat amounts paid in the country of origin on goods and even on services that were utilized in that country. A reliable 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 to the UK.