Operating a business in the UK that needs importing goods can be stressful unless you know about vat customs rules imposed by the HM Revenue and Customs department. Learning all about these rules may benefit your organization as you can make sure that your purchase and sales deadlines are maintained and your costs are kept to the minimum.
If you import taxable goods into the UK then you will be charged import vat or customs duties. These duties have to be paid on the value of the products and they are subject to 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 there http://vatvalidation.com/vat 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 products which you’ve imported to the UK.
If 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’ve effectively paid double the amount tax on the same goods. If you’re a vat registered trader in the UK you’ll be able to apply for vat reclaim so as to get the earlier amount back to your 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 the refund process could take between four to eight months to materialize, your costs will definitely get lowered. You ought to employ the services of a capable vat agent that charges fees only on the volume of refunds that you get. This move will give you a reason for your vat agent while rewarding you with many successful vat refunds.
Once you’ve 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 will have to mention these vat amounts during your vat returns which will need to be filed regularly in line with 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 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 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 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 reliable vat agent will 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.